Homeowners Insurance

Be sure your home is insured for full replacement cost, but no more. You should periodically ask your agent to complete an updated replacement cost estimate to determine whether your coverage needs to be adjusted.

Keep in mind that your home may need to be insured for more than it is currently worth because replacement cost is not directly related to market value, rather the estimated cost of labor and materials for rebuilding your home from scratch. I also recommend the highest available liability limits and at least a $1,000 deductible.

Most homeowners insurance policies automatically come equipped with plenty of general personal property coverage. However, watch out for exclusions and limitations on certain types of personal property.

Typically insurance companies will not pay much for stolen or damaged jewelry, musical instruments, art work, or other valuable collectibles unless you add an endorsement to specifically cover these items for their full value. It might also be helpful to keep receipts, pictures, or videos of your personal belongings in a safe place offsite so you could easily prove to an insurance adjuster what you are entitled to in the case of a loss.

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Capstone Capital does not issue homeowners insurance.

Retirement Fundamentals
Insurance Fundamentals