A home purchase marks a huge moment in your life. When you make such an important financial decision, you’d like to have some guarantee that your home will be alright. While you can’t prevent natural disasters from occurring, you can work against them. Homeowner’s insurance — specifically, dwelling coverage — gives you peace of mind. With a homeowner’s insurance policy in place, you can rest assured that damage to your home and the costs associated with rebuilding your home will be accounted for. In addition to standard dwelling coverage, you may also want to consider extended dwelling coverage.
Extended Dwelling Coverage Accounts for the Time it Takes to Rebuild
If your home is damaged or even completely destroyed by a natural disaster, it will take time to rebuild. However, your life has to keep moving. You’ll need somewhere to live in the interim, and you’ll need meals to eat. These costs can be covered by extended dwelling coverage. Extended dwelling coverage can be itemized as part of your home insurance policy, and it’s important to know what level of coverage you have. Talk to your insurance agent for a full breakdown of how your home insurance coverage is distributed.
Additional Living Expenses Coverage Can Help with Added Costs
Life can get expensive in the wake of an accident. You may spend $400 a week on groceries to feed the family. That system only works when you have a kitchen where you can prepare the groceries. If your home is destroyed and you’re living out of a hotel room, you may have to dine out during that time. Your monthly food budget expenses may jump by a significant degree. Additional Living Expenses Coverage (ALE) can account for the jump in expenses and keep your budget in balance during this difficult time.
Additional Living Expenses Coverage Is Typically a Percentage of Extended Dwelling Coverage
Again, it’s important for you to know the details when it comes to your home insurance policy. Your additional living expenses coverage is often calculated as a percentage of your extended dwelling coverage. Most likely, your ALE is 20-30% of the policy. So, if your policy covers you for $300,000, your ALE would likely be $60,000 to $90,000. This can really save you when you have to account for the activity and lifestyle of your family between homes. You should ask your insurance agent for policy specifics, and how to adjust your policy if you believe it would be best for you.
Make Your Home Purchase with Bill Swanson
Before you get home insurance, you need a home to insure! Bill Swanson can help with that. He’s been helping Omaha families buy and sell homes for over 30 years. When you’re ready to work with a trusted real estate agent, call Bill. You can begin the home search with Bill Swanson by contacting his Omaha, NE office at 402-679-6566.
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