Buying A Property

Buying a home is possibly the best investment you can make for you and your family. Whether you are moving from renting to buying, purchasing a new house, or simply relocating, you are no doubt weighing different factors such as price, size, neighborhood, etc. Another decision to weigh is homeowners insurance. Below are some things you might want to consider before making your home purchase. (Features may differ by state and by policy type. Please see your policy contract for details.)

How much coverage do you need?
You'll want insurance that covers the cost of rebuilding your house in the event that it gets destroyed.

If you purchase a home that has many upgrades, it may cost more to rebuild due to a shortage of materials or specialized labor. Farmers has a Homeowners policy which offers up to 125% extended replacement cost, meaning that you may receive up to 25% above your dwelling limit in the event of a covered loss and if you feel you need even more coverage, Farmers offers a policy with up to 150% extended replacement cost, meaning that you may receive up to 50% above your dwelling limit in the event of a covered loss.

If you purchase an older home, it may need to be rebuilt according to today's building code standards, adding to the cost. Policies from some competitors may only cover reconstruction cost, but the Farmers homeowners policy includes an additional 10% above the reconstruction cost to cover for additional expenses due to building ordinance or law.

Don't forget to contact your local agent in Round Rock, TX, Robert Cardenas

• The primary factors that will determine that cost include:
• Local construction costs and the square footage of the structure
• The type of exterior wall construction-frame, masonry (brick or stone) or veneer-and the type of roof.
• The style of the house (ranch, colonial)
• The number of bathrooms and other rooms
• Attached garages, fireplaces, exterior trim and other special features like arched windows.

Estimating Rebuilding Costs

Below are some tips to help you estimate the cost to rebuild your home:

• Every year, take the time to check the value of your insurance policy against rising local building costs. Your Farmers agent is available to review your coverages with you so that you can make sure that adequate protection is in place.
• Check the latest building codes in your community. If your home is severely damaged, you might have to rebuild it to comply with the new standards requiring a change in design or building materials.
• Do not insure your home for the market value. The cost of rebuilding your house may be higher (or lower) than the price you paid for it or the price you could sell it for today.
• Some banks require you to buy homeowners insurance to cover the amount of your mortgage. Make sure it's also enough to cover the cost of rebuilding.
• Increase the limit of your policy if you make improvements or additions to your house. You may upgrade features in your home to fit your tastes and lifestyle. These enhancements can significantly increase the replacement cost of your home. Your Farmers agent will be available to help you in your determination of whether additional coverage is needed.
• If you have questions about the amount of coverage you should have, consult your local Farmers agent.