How much does my home need to be insured for in Laurel, MD?

When thinking about how much insurance you need for your home in Laurel, Maryland, you should always think about the worst case scenario. Will you be covered if the worst happens and a fire burns your house, and all of the contents inside, down to the ground? In addition to worrying about your dwelling and all of your personal property, your homeowners insurance should also provide adequate protection against liability.

When you have a mortgage on a home in Laurel or in nearby Washington (District of Columbia), your lender will require you to carry homeowners insurance on your dwelling that is at least equal to the amount you owe on he mortgage. For many reasons, you may want to have more than the absolute minimum.

Liability coverage is a very important part of a homeowners policy because if someone gets seriously hurt or even dies while on your property, your liability could be enormous. If you have inadequate liability insurance, you could lose your house and any other assets that you may have.

You should also make sure your home in Maryland or the District of Columbia has the right type of home insurance. You want to be covered with replacement cost insurance and not insurance based on depreciated value. As an independent agent, we have seen many instances where people got burned when they had to file a claim and did not have replacement cost home insurance.

If a covered peril ruins your 5-year old mattress, you will get a cash payment equivalent to the current market value of a used, 5-year old mattress. If you were insured with replacement coverage (at a slightly higher premium), you could go to the store and get a similar, brand new mattress.

Always think about replacement cost and the cost to rebuild. Construction and material costs can be double or more of the amount when you bought your home. Your home insurance should be enough to build the same house today that you originally built twenty years ago.

We are always here ready to answer any of your questions about home insurance. Please give us a call and an independent agent will make sure you get the homeowners policy you need at a price you can afford.