Specific or global limit coverage for home insurance?
I'm currently with Allstate and my home insurance is currently structured under these categories with specific dollar limits:
- Dwelling Building: $367,000
- Detached Private Structures: $73,500
- Personal Property: $294,000
- Additional Living Expenses: $92,000
- Single Limit of Insurance: $826,500 (the sum of everything above)
But Allstate also includes a Home Replacement Cost Guarantee. Their specific wording is: "If you have a property loss that exceeds the amount of coverage on your dwelling or private structures, we'll cover the cost to repair or rebuild your home even if the damage exceeds your policy’s limits."
I've been shopping around for different insurance and found a much cheaper rate with Sonnet, but they offer a Global Limit maximum of $1,000,000 all-inclusive that would effectively cover all the same things as Allstate rather than specific dollar limits per category.
So, my big questions are:
- Is one of these coverages obviously better than the other?
- Has anyone ever placed a claim with either of these types of coverages? What was your experience if so?
The world of insurance has always been confusing to me, so any help is appreciated. Thanks!