Question

How should the Brock's determine whether they have enough insurance coverage for their home?

Answer 1

There are plenty of factors which are involved in determining the adequacy of homeowners insurance coverage. It is a mathematical process and it starts with assessing the numbers of particular property as well as its contents.

Firstly, It is essential that the physical structure of the property is insured. For this, one should have guaranteed replacement cost policy. In case of a loss of home, the insurance company will pay full amount to rebuild the house.

Secondly, Brock should also have content coverage insurance, in this insurance, the insurance company will insure all the contents of the homer which is not affixed to physical structure of the home.

Thirdly, Homeowner's Liability Insurance is yet another insurance that Brock must have, in order to secure himself fully from any unwanted event which may cause injury to an individual. In case, the individual brings lawsuit against the homeowner, the insurance company will bear the damage.

Hence, these were some important insurance coverage that a homeowner must have, only then he or she can be called fully secured.