Many homeowners don't know that not all homeowner policies are not the same. Some homeowners don't know the difference between "insured value" and "replacement value."
If you have homeowners insurance to cover the value of the home, that's insured value. There are upsides and downsides to insurance value. When the market is good, the value of your home is usually more than you paid. However, if the market is bad, the value of your home is lower than what you paid. So, you are basically gambling with your home.
If a fire destroyed your home, you will want everything replaced; not just what the insurer thinks your home was worth at the time. The best homeowners insurance to get is replacement gap insurance.
Replacement insurance will replace the house completely. This includes custom and rare work. You will be reimbursed the total amount it will cost to replace your home and all its contents. For example, your very expensive custom made granite counter tops or your marble floors will be covered for the cost of material and installation. Replacement insurance will even cover this cost if the price is higher than when you first had them installed. This type of insurance will also cover damage to your landscaping.
The choice of homeowners insurance is up to the homeowner. So, take your time and think about the type of coverage you think your family will need in the event of an unforeseen event.
Tulsa, Oklahoma has several great homeowners insurance agency's to choose from. They will help you choose the right policy for your home and answer any questions you may have.
