With fluctuating home values, are your homeowners insurance policy limits enough to cover the cost of rebuilding your home?
Review Your Policy Limits
An insurance policy is meant to rebuild your home. That cost may be higher than the price you paid. It could also be higher than its current market value. Protect your investment. The following tips will help ensure you have the coverage needed, eliminating worry and hassle.
Review Your Policy Limits
It is a good idea to contact us once per year for an insurance checkup and to review your policy limits. Let us know if you’ve remodeled, made an addition, or purchased an expensive item for your home. We also need to know of lifestyle changes. For example, have you recently been married? Is an elderly parent now living with you? If so, does the home now contain expensive heirlooms that need coverage? Lets get these items covered in advance of a claim.
Understand Your Policy
A homeowners policy covers your home and it’s contents, plus outbuildings. You will want to purchase additional insurance to cover jewelry, collections, artwork, or memorabilia. Give us a call or read your policy to determine exactly what is covered.
Quote Additional Protection
A typical homeowners policy protects against fire, lightning, wind storm, and many additional perils. However, most do not protect against damage caused by floods, hurricanes, or earthquakes. If you live in an area prone to any of those, ask us about additional coverage available as a stand-alone policy.
Insure Home Improvements
When making a major change to your home, talk to us about insuring those improvements. Details can be important. For example, if you remodeled a bathroom, whether you installed a standard bathtub or a whirlpool tub can make a big difference in replacement cost. If you installed new cabinets and granite countertops, you’ve added value of your home that you need to protect.
Understand Rebuilding Costs
As a general rule for most areas, rebuilding a home costs more than an identical new home. This is because rebuilding includes a number of additional expenses such as demolition, debris removal, worksite access, and updated building codes. If in doubt, consult a contractor for an estimate on your home.
Rising Construction Costs
Construction costs are on the rise. When reviewing your policy, set your limits accordingly. Consider also the increased cost of construction associated with a widespread natural disaster. For example, if you live in a coastal community and the entire area is damaged by a hurricane, building materials and construction costs will be pushed even higher.
Don’t play the guessing game. Contact us for assistance on determining the value of your home. Give us a call at (877) 606-1375 or visit our homeowners insurance web page for more information. Each one of our clients is assigned a personal agent in our office.
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