Sandy Springs Homeowners Insurance

Sandy Springs homeowners insurance is the best way to protect the investment made in a home. Sandy Springs, GA, is a burgeoning community in Metro Atlanta. The city is home to many Fortune 500 companies with lucrative job opportunities that draw people to Sandy Springs. As a suburb of Atlanta, GA, Sandy Springs has all the amenities of the city with the quiet charm of a small Georgia town.

Sandy Springs, GA, real estate has high market value relative to other cities in Georgia. Many neighborhoods in the city are new developments that boast large, state-of-the-art homes. These assets should be protected from damage and loss with a Sandy Springs homeowners insurance policy.

Determining Home Value

The first step in procuring Sandy Springs homeowners insurance is to determine the value of the home. Georgia homeowners insurance plans are calculated based on the estimated cost to replace the home in the event of damage or loss, not the market value. A contractor or insurance agent can help determine the value based on the size of the house, when it was built and the construction type. Other factors that affect the value for determining coverage are distance from a Sandy Springs fire department and the condition of fixtures like plumbing, roofing and electric.

Once the replacement cost of the home is determined, the Sandy Springs insurance agent will develop a rate quote and a homeowners insurance coverage plan. Sandy Springs homeowners insurance offers four types of coverage in a single plan. These are the essentials, the basic form. Other options can be added, but all homeowners should have these four types: dwelling and personal property, personal liability, medical payments and additional living expenses.

Dwelling and personal property coverage pay for the cost of repair or replacement of the home and other structures in case of disaster. Personal property including furniture, clothing and personal belongings are covered as well. Homeowners insurance coverage limits are based on the replacement value of the home. This type of coverage is necessary to recover any loss due to fire or lightening, and any other natural disaster specified on the Sandy Springs homeowners insurance policy.

Personal liability coverage protects the homeowner in the event that someone is injured on the property. This plan covers the cost of a lawsuit if the homeowner is found responsible. Medical payment coverage pays for the injured party's medical bills, relieving the homeowner of a potentially devastating financial burden.

Additional living expenses coverage provides for the family's alternative dwelling while repairs are made on the home in the event of a disaster. This may seem like an unnecessary expense, but it is worth the peace of mind to know the family is protected following damage or loss to the home. All other Sandy Springs homeowners insurance options are left to the owner's discretion.

Replacement Cost vs Actual Value

Most Sandy Spring homeowners insurance policies cover replacement cost of the dwelling and actual cash value of personal property therein. Replacement cost is the estimated amount it would cost to repair or rebuild the home to similar quality in the event of a disaster. Replacement cost coverage does not deduct for depreciation, the decrease in the home's value over time, so be sure that you understand policy basic coverages.

Homes typically must be insured for 80 percent of the replacement cost to qualify for replacement cost coverage. If the home is insured for less than 80 percent of the replacement cost, the provider is not obligated to pay the total amount of loss. The Sandy Springs homeowners insurance company is at liberty to calculate a loss settlement to determine how much to pay out for an under-insured home.

Actual cash value is the value of personal property at the time it is destroyed. This is calculated by subtracting depreciation from replacement cost. Replacement cost coverage pays more to the homeowners in case of disaster than actual cash value. Replacement cost coverage requires a higher premium, but the extra protection is worthwhile. Settling for actual cash value coverage is a smaller immediate investment, but it can be a gamble if a disaster should occur.

When selecting a Sandy Springs homeowners insurance policy, it is important to take a thorough inventory of the family's belongings. By specifically identifying personal property, including age and value, policy holders may be able to recover more payment after a loss. A Georgia certified appraiser can take an inventory and estimate value, but the insurer may accept a thorough inventory by the policy holder.

Begin by making a list of all electronics, valuables, collections, furniture, antiques and anything with significant cash value. Recording a walk-through video or taking a series of pictures can also aid in making a comprehensive inventory. Attach receipts and any other relevant documentation to the inventory to record an accurate value to ensure adequate coverage on your Sandy Springs homeowners insurance policy.

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