Two Home Insurance Policy Options You Need to Know

What if your home insurance policy didn’t cover all the costs of rebuilding your house?

It’s a scary thought, but it could happen if you don’t have enough coverage. That’s why it’s important to read about two common situations that are often not covered by homeowners’ policies — and the affordable options that can help.

Extended Dwelling Coverage

Homeowners insurance may not be enough to cover the costs of rebuilding your home after a disaster. Extended dwelling coverage helps you stay within policy limits and still have some extra cash on hand for when construction goes up-in price or unforeseen circumstances arise during remediation work.

 As we know, disasters can strike at any time so make sure that if they ever occur then our team will help with all aspects including getting quick quotes as well making sure everything falls back into place quickly  leaving nothing but smile lines across faces.

For an example, consider this…..Your home is currently insured for 100% of its replacement cost, with the cost based on the value of your house when the policy was originally written. However, a wildfire sweeps through your area destroying your home along with hundreds of others nearby. Due to the high demand caused by the natural disaster, construction materials and labor costs increase 20% in your area. So your $200,000 home will now cost $240,000 to rebuild. If you had 20% extended dwelling coverage, you’d get the $240,000. Without it, you get $200,000 and will have to make up the difference out of pocket or settle for less house than you originally had.

Building Ordinance or Law Coverage

The cost of rebuilding your home after a covered loss can be much higher than you expect. But with our Building Ordinance Policy, or Law Coverage we will protect the property and keep it insured in case there are any damages caused by law enforcement activity which enable us to provide financial assistance for repairs without increasing premium rates on homeowners policies.

Again, let’s take the example from above and assume you have a $200,000 homeowners’ policy. With a 10% building ordinance policy, you would get an extra $20,000 to apply to the new building code requirements you must meet. Without this policy option, you’ll have to pay the difference to bring your house up to code.

Finding the Policy for You

 The Sanders Insurance dwelling and building policy can offer valuable protection from gaps in coverage to help you avoid a costly loss. With an affordable annual premium, it's easy for homeowners like yourself who need that extra security when faced with unforeseen covered events or unexpected repairs on their homes because they're protected by our professional agents.