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Understanding Coverage Limits with your Homeowners Policy


We often get asked about coverage limits when it comes to homeowners insurance policies. Coverage limits refer to the maximum amount your insurance policy will pay for a covered claim. These limits vary depending on the type of coverage and the specific policy. When deciding what your coverage limit should be, there are several factors to consider:

  1. Your home's replacement value. Known as your dwelling limit coverage, this is the cost of rebuilding your home in the event of a total loss. It's important to note that your home's replacement cost is different from its market value.

  2. The value of your personal property. This includes items such as furniture, electronics, collectibles, and clothing. It is important to ensure that your personal property coverage limit is high enough to replace these items in the event of a loss.

  3. Your risk of liability claims. For example, if you have a pool or trampoline, you may want to increase your personal liability coverage limit to protect against potential accidents.

  4. Your budget. While it is important to have adequate coverage, it is also important to ensure that your premium is affordable.

If you have any questions or want to discuss adjusting or shopping your policy, please don't hesitate to reach out. We serve home and auto insurance needs for clients in all of Utah, Idaho, and Arizona. 801-654-6664

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