Paying too much on homeowners insurance can be a major drain on you finances, but according to HouseLogic getting caught without enough of it could prove to be even more costly.
According to HouseLogic, not all homeowners insurance is equal, that’s why it may be cost effective to review your policy every year to make sure it meets your needs as your household grows.
In the event of the unthinkable, having a policy that has actual cash value coverage can reimburse you for the value of your home based on its current condition. You may want to improve your home value by making some updates every few years such as replacing only windows, cabinets or appliances to make sure you can get the most for your money in the event of an emergency.
To get the full coverage of replacement coverage, it’s advised by the source that you purchase enough insurance to cover the current value of your home, excluding the land value. Many homeowners make the mistake of insuring their home for its market value at the time of purchase. However, by factoring in a fluctuating housing market and inflation, you could end up being short if your ever need to capitalize on your premium.
Updating your home to meet current housing trends is a great way to improve your home value. However, if you find yourself checking the couch for spare change to fund your next home improvement project, you may want to consider refinancing your home loan with Freedom Mortgage to free up some extra funds.
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