What we don’t know about home owners insurance

An actual house fire in St. Paul last spring

Most of us pay into our homeowners insurance policy and never collect. We have a high deductible plan which is fine. If the place burns to the ground we can rebuild.

Generally homeowners insurance will cover the replacement cost of a home which isn’t quite the same as the resale value. If a home is totaled the owner has a lot to rebuild on. How much will it cost to build the same home? I don’t have a clue to be honest. Construction costs have gone way up since we purchased our home. We don’t know at this point if we have enough insurance but are going to find out.

Home owners insurance isn’t like car insurance. There isn’t any law that says a person has to have homeowners insurance but if there is a mortgage the lender will require it.

Most people don’t realize that many homeowners policies do not cover vacant homes. If your home is going to be vacant call your insurance company and ask if you will need to have something added to your plan for full coverage.

Renters should always get insurance. As hard as it is to imagine landlords are not always insured and even if they are tenants belongings may not be covered.

People do not always read their insurance policies. They are pretty boring but worth a read.

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