Defending the Castle

Whoever came up with the phrase, “Our home is our castle,” probably didn’t have the typical split-level in mind. However, even if our dwelling lacks a protective moat, there’s a lot we can do to make our homes more fortress-like, at least on paper. According to a story posted on _CNNMoney.com_ on 7/14, it’s a good idea to check our homeowner’s insurance policy for the following five provisions: Replacement cost (this covers the full value of what it would cost to replace our possessions, as opposed to cash value insurance, which factors in depreciation); Inflation guard, which adjusts the value of our home as the cost of building materials rise; Flood and sewage insurance (even if you don’t live in a flood zone, the article said such insurance may be a good idea since we’re a lot more likely to experience a flood than a fire); Building ordinance or law coverage (covers any added costs of rebuilding associated with new building codes); Living expenses (find out how long your policy will pay your living expenses if damage to your home would leave you living elsewhere while repairs are made).
h3(matt). Matt’s View
p(matt). Insurance is one of those things we all hate to pay for, but are glad to have when we need it. Call your agent and ask about the items described above. When I called our agent I found out that our sewage backup insurance totals just $2,500 and does not cover furniture. When I inquired about flood insurance, I was encouraged to weigh the cost (about $400 per year) against the likelihood of a flood in our area. Since the nearest river is about four miles away and its banks are much higher than the water, we’re leaning against the coverage. A fifteen-minute call to your agent may not save you money on your premium, but it could save you a lot of headaches and money down the road.

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