Great Bend Home Insurance Dwelling Amount AKA Coverage A
When looking for a home insurance policy for your home you will hear agents talking about the dwelling amount, rebuild cost or coverage A. What is this and what do they mean? These terms refer to the rebuild cost of the home. This is the cost insurance carriers estimate it would take to rebuild your home from the ground up exactly as it stands now. This is calculated to ensure there is enough coverage to make you whole again if the home was a total loss.
In the insurance world the term total loss means your home is mostly or destroyed by something that is covered by your homeowner’s insurance policy. In Kansas the most common things that come to mind that could destroy a home is tornado or fire. More recently clients have been asking us about earthquake insurance. Important note here Earthquakes are not covered within your home insurance policy. It can be added, however. Some insurance companies have an endorsement that can be added to the current home insurance policy. If your current home insurance policy does not have this endorsement, we can add it through a standalone insurance company.
Now we know the basics of the dwelling amount and total loss but how do insurance company’s figure out how much it costs to rebuild a home? Keep in mind that the dwelling amount, rebuild cost is only an estimate. There are several factors that go into estimating the rebuild cost of your home such as:
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Location such as Great Bend, Ellinwood, Larned, Hoisington, Ellsworth
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Square Footage of Home
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Age of the Home
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Safety Features such as deadbolts, fire and smoke alarms, security systems
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Finish of the Interior
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Type of Foundation
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Number and Finish of Bathrooms
And much more!
The result of calculating this is to indemnify you (insurance talk) or to make you whole in the event of a catastrophic event.
Your independent insurance agent should discuss these things with you and go over the process and estimate of the rebuild cost. If they don’t or they lower the rebuild cost to lower the premium find a new agent.
Properly evaluating your coverage needs starts with how to rebuild your home. Panzer Insurance will always work to make sure you are property covered and that your home insurance policy will take care of you when circumstances don’t.
