Property insurance usually comprises renters, condo, or home insurance, along with flood and earthquake coverage. It is an important part of many people's financial planning efforts, and it protects the insured against financial losses if disaster strikes. Comaltex Insurance Agency, an experienced home, life, auto, and renters insurance broker in New Braunfels, TX, discusses some of the most important questions you should ask yourself when buying property insurance. Knowing the answers will help you buy adequate amounts of the most appropriate coverage.

3 Important Questions to Ask When Buying Property Insurance

1. What Would It Cost to Rebuild Your Home?

To purchase an adequate amount of dwelling coverage (which reimburses you for repairs to the structure of your house), you need to know how much it would cost to rebuild your home if it’s destroyed by fire, a storm, or another covered disaster. Some people purchase only enough dwelling insurance to cover the outstanding balance of their home loan. A mistake like this could leave you without a place to live and with no way to purchase a new home. Contact a builder for an accurate estimate of rebuilding costs, and purchase at least that amount of dwelling coverage.

2. What Would It Cost to Replace Your Personal Property?

Property insurance also protects personal property, so you also need to ask yourself how much it would cost to replace your appliances, furniture, clothing, electronic devices, and the rest of the contents of your home. Take a week or so, and take a complete inventory of your belongings. Try to figure out the replacement cost for the total, and purchase that much personal property insurance. If this task is too challenging, some experts recommend using 50% to 70% of your home's replacement value to estimate personal property value.

3. Do You Need Flood or Earthquake Insurance?

Although wildfires, hurricanes, and tornadoes are typically covered, floods and earthquakes are usually excluded from insurance companies' basic property insurance policies. Therefore, if you live in an area susceptible to flooding or earthquake damage, you will have to purchase additional coverage to protect yourself from those perils.

Comaltex Insurance Agency in New Braunfels, TX, can help you determine which coverage types make sense for your situation and how much you need of each. Call (830) 625-7511 to discuss your options, or visit the website to request a quote.