The first step when looking for residence insurance is to know the type of policy (the Limited HO-1, Basic HO-2 or the Special HO-3) you want. The moment you are sure of the right type to buy, you then have to understand the level of coverage available to your cover need. Here are the levels of coverage: replacement cost level, guaranteed replacement cost level and actual cash value. Make sure you know exactly what they cover and your cover need before paying for this insurance service.

The actual cash value level: This provides the money that will replace your home and properties after removing depreciation. This simply means that if you purchased a TV set for $1,500 three years ago, it is most likely that you will not get back your $1,500 from your insurance provider.

The replacement cost level: This provides the money that will replace your home and valuable belongings without removing money because of value depreciation. This simply means that you will get back your $1,500 for the TV set the moment you are able to show proof of purchase (receipt) to your insurer. This is usually clipped to your policy amount, and it is by far the most popularly known level of coverage with residence insurance.

The guaranteed replacement cost level: This provides the money, no matter the cost, that is needed to rebuild your home and replace your valuable properties. This level of coverage is not clipped or limited to your policy limit or amount, and it gives the highest level protection when compared with the other levels.

Do you need quality residence insurance? Let us connect you with the agents on our network. This will make it easier for you to compare different plans and their prices, and choose your needed and affordable policy.

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