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Portland homeowners have many factors to consider after purchasing a home.  What kind of improvements will be made in the future?  What work needs to be done immediately?  And most importantly, how can the home and its contents be adequately protected?

First-time homeowners and experienced homeowners who wish to upgrade their current insurance policy should consider the following options when purchasing homeowners insurance.

First, consider the causes of loss to insure against.  There are several types of coverages to choose from, but the two most frequently purchased are broad form and risk of direct physical loss coverage.

The broad form coverage provides protection for perils that are specifically listed in the policy.  Examples of such perils include fire, wind, theft, vandalism, frozen plumbing and falling objects.

The risk of direct physical loss coverage is more comprehensive than the broad form coverage.  In addition to the perils named above, it also covers accidental losses such as paint spills, ice damage and counter-top burns.  However, there are exclusions to this type of policy.  Examples of losses excluded from the risk of direct physical loss coverage include earth movement, termites, rodents and surface water damage.

After determining what kind of perils to insure against, homeowners should decide the level of coverage to purchase.  Additional replacement cost is an option available on some homes.  If you qualify for this coverage level and your home is destroyed, an insurance company will rebuild your home, even if rebuilding it costs more than the amount of insurance you have purchased.

Homeowners might also consider purchasing replacement cost coverage for their personal property, such as televisions, VCRs, stereos and computers.  Replacement cost coverage allows for the replacement of personal property without depreciation.

A third consideration for homeowners is the deductible for their insurance policies.  Higher deductibles result in lower premiums.  Most insurance companies offer deductibles in $100, $250, $500 and $1,000 amounts.

When deciding upon a deductible, Portland homeowners should consider their ability to pay the out of pocket expense at the time of the loss.  The minimum deductible suggested for homeowners is $250.  However, homeowners should also consider increasing their deductible to $500 to reduce their premiums.

A fourth area of consideration is the amount of liability coverage to purchase.  Liability coverage allows homeowners to protect their assets if they become involved in a lawsuit.  A minimum of a $300,000 limit is recommended to protect your assets.  However, coverage can go as high as $1 million.

Buying homeowners insurance is a very important step in maintaining a household.  Different Portland homes warrant different policy coverages.  With the help of an insurance agent, finding the appropriate policy coverages does not have to be a difficult decision.  Contact an insurance professional for help determining the right coverage for your needs.