Homesite Insurance

Obtaining a homesite insurance quote in HubTitle, SD is easy. There are many agents who can provide a quote, but be sure you understand what your policy “will” or “will not” cover. After all, our home will be the largest investment that most of us will ever make. homesite insurance companies will insure your home for the cost to rebuild the house. Not market value, which is the price you paid or the price that you could sell your house for. Most of us need to borrow money from a bank to buy our home and the bank will REQUIRE you to buy homesite insurance and keep it in force while you have a loan. If you are buying a new house, homesite insurance will need to be in place by the time you close on loan.

There are many coverages associated with a homesite insurance policy, but structure coverage is your primary concern. If you purchased your home for $90,000, but it will take $200,000 to rebuild the home, then you got a very good deal or you live in a smaller town. You may not want to pay the premium for a $200,000 house, so you might choose to insure for $90,000 as that is all that you have into the house. You can insure for $90,000, but be sure your agent explains the possible pitfall of insuring your home below the true rebuild cost.  If you have a small fire that damages half of cupboards in your kitchen, the homesite insurance company does not have to replace the damaged cabinets with new cabinets that match your existing ones.

The homesite insurance company only has to repair loss with “common construction” materials, which basically means the cheapest cabinets they can buy. If your house is insured at the full replacement cost, then the homesite insurance company has to replace you fire damaged cabinets and match your existing cabinets exactly. If they cannot find matching cabinets, they will have to replace all the cabinets to put you in the same position you were before the loss. Please make sure you ask questions and let your agent educate you, so you understand what you’re buying while you’re protecting one of your largest investments.


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