You know more about your home and assets than anyone else — and a Farmers® agent can help as you use those insights to select coverage limits for your policy.
You may want to start by obtaining an estimate of your home’s replacement cost. This isn’t the price you paid for your house or the size of your mortgage, and it won’t include the value of land. Rather, the estimated cost of rebuilding your structure will help you choose the coverage limit you want.
Have you renovated your home? Maybe you remodeled your kitchen or bathroom, or added expensive materials like a marble floor or custom woodwork. Include the value of any upgrades in your estimate, since it may cost more to replace or rebuild unique features with new materials or specialized labor.
Your homeowners policy will cover the cost of replacing personal property that’s stolen, damaged or ruined if replacement cost coverage is purchased — up to policy limits. Taking a complete inventory of your possessions and their value can help you choose the coverage you want, speed up the claims process and verify losses if needed for tax purposes.
Consider using a home inventory app that helps you organize, update and save your household inventory.
A basic homeowners policy might cover items like jewelry and fine art — but only up to a fixed amount. It isn’t likely to cover the full value of a $10,000 ring or a $7,000 painting. Identify these items and ask your Farmers agent about personal articles floaters. These can increase coverage limits and may provide comprehensive coverage, but may require additional documentation.
The more assets you have, the more vulnerable they become if someone sues you. To determine your liability limits, it’s important to consider your net worth and how much protection you want.
You might also consider a personal umbrella* policy that can extend your liability coverage beyond the maximum provided by your underlying policies (auto, home, motorcycle, boat, etc.) up to as much as $10 million**.
*Some optional coverages are not available in every state.
** Excess liability coverage for U M/U I M is available up to $1M only.
Consider how much extra it might cost to live elsewhere while your home is repaired or rebuilt — this expense is often overlooked when people choose their homeowners coverage.
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