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Protect your new home

Your new home will probably be among your most valuable assets. As you look into your homeowner’s insurance options, make sure you plan to have enough insurance to cover the structure and contents of your home against damage from fire, weather and theft, as well as protection from third-party liability claims.

Homeowner's insurance: Three cost factors to consider

Home reconstruction

Consider that what really matters is how much it would cost to rebuild your property to its current state in the event of total loss. Replacement costs are a function of building materials and construction labor costs, so it’s advisable to consult with an insurance professional.

Asset replacement

Document your possessions by making a complete list of what you own, with an estimate of value. Many people do a visual inventory by videotaping a walk-through of their home or by photographing individual items.

Liability protection

Conventional homeowner policies also protect you from third-party liability claims. For example, if someone is injured on your property and makes a claim against you and your family for medical expenses, your homeowner policy provides a layer of protection.

Depending on your circumstances, you may also want to consider an “umbrella" insurance policy that provides more comprehensive liability protection.

Talk to an insurance professional. Unlikely as a catastrophe may seem, it’s imperative that you have enough coverage to replace your home, guard your financial well-being and protect your family.