When you go to purchase Home Insurance Lansing MI, you may wonder why your premium is much higher or much lower than that of a friend or neighbor. The insurance policy uses many factors in calculating your premium, with all factors taking into account the risk you pose as a home owner. If you live in an area that is considered high risk or if the insurance company believes, for whatever reason, that you are more likely to file a claim than the average home owner, your premium will be higher. Understand the various types of coverage offered so you can choose the appropriate limits for each and possibly save money.
Dwelling-When most speak of Home Insurance Lansing MI, this is what they are referring to. Dwelling coverage provides the money needed to repair or rebuild a home if it is damaged due to a covered peril. The amount of coverage to be purchased here is the cost needed to rebuild the home.
Other structures-Many property owners have sheds, barns, detached garages or other structures on the property. This coverage protects those structures and the limit is typically 10 percent of the dwelling coverage.
Loss of use-This coverage goes into effect in the event you are unable to use your home as it is being repaired or when it is being rebuilt. The limit here is normally 20 percent of the dwelling coverage.
Personal property-Everything contained within the home, from clothing to toys, is covered under this portion of the policy. In most cases, the limit for personal property coverage is 50 to 70 percent of the dwelling coverage.
Personal liability-This coverage protects you in the event someone is hurt while on your property and they choose to file a lawsuit. Insurers have a minimum of $100,000 for this coverage, but homeowners may purchase more.
Medical payments-If someone is hurt while on your property and chooses not to file a lawsuit, this coverage pays their medical expenses. Coverage begins at $1,000 and can be increased if desired.
Learn how Home Insurance Lansing MI rates are set. Once you have this information, determine how much coverage you need. Although you will be limited in certain areas, you do have some flexibility so you can choose the level of protection you are comfortable with. Don’t skimp in this area as doing so could have disastrous consequences.