[1]Make sure you get enough Liability Insurance
If you end up getting sued for an accident or incident and it is covered under your house insurance, it will cover your settlement and you legal fees, however they will only pay you for the amount you are covered for. In m ost cases the amount you are covered for in your house insurance is not nearly enough to cover any settlements let alone the legal bills. You should consider getting more liability insurance for your house so that you are adequately covered, for $2, 000, 000 extra cover you will probably be looking at an extra $500 a year.

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[2] Make sure you Insurance covers additional living expenses
Lets say if you house was in a fire and was completely destroyed, where would you live? how would you pay for this? Most Insurance policies will come with Additional Living Expenses insurance that will pay the cost for an hotel or services apartment, while your house is being fixed or renovated. However it is important to check how much will be covered and whether there are any exceptions to the policy, you could face severe financial stress if you have to fork out the cost of a hotel on top of your insurance.

[3] Make sure you properties contents are covered
If you are going to buy a new house or even more into a new house the chances are that you will be purchasing some new furnishings to accompany your wonderful new home, not excluding all the existing contents you will be bringing in. These need to be covered under your home insurance policy, you need to make sure that you have adequate coverage for the cost of replacing them, most insurance policies include coverage that is around 50% – 60% of the replacement value of your house. However it is wise to get additional insurance to cover some of the more expensive items that you might have such as antiques, computers and expensive furniture. These items should be covered under a separate policy to make sure that they can be replaced it is called a separate endorsement.

[4] Make sure your insurance policy will cover the replacement cost of the home
Don’t make the age old mistake of insuring your home for the value of it, you need to make sure you have insured it for its replacement cost. The replacement cost is what the insurance coverage will pay for if your house is involved in an incident where it needs to be repaired or rebuilt. So when you do go to an insurance company make sure you figure out what it would cost to replace the house at to days prices, don’t go for the house cost to build or the market value of the home because you could be under insuring or over insuring your house.

Make sure to ask your insurance company for their opinion on the matter because they have advanced calculations and forecasting tools that can allow them to have a pretty good indication on the replacement value of your house. Most insurance companies will additionally include extra coverage for any blowouts during construction, most insurance policies are in the region of 110 to 150% of the replacement value of the house.