Has your Home Sweet Home had an insurance checkup lately? Just like an annual checkup at the doctor’s office, it’s a good idea to review your homeowners insurance policy once each year.
If you don’t keep on top of your insurance coverage, you may not be adequately covered in the event of a fire or other disaster.
One of the biggest mistakes homeowners make is not having enough insurance to cover the cost of rebuilding their homes. In fact, one study found that two-thirds of U.S. homes may be underinsured! Many homeowners mistakenly believe they should insure their homes based on current market value. Instead, they should make sure their properties are covered for the cost of rebuilding. These two values can be very different. For example, a home with a market value of $280,000 may actually cost nearly $400,000 to rebuild at today’s labor costs and materials. You’ll want to make sure you have enough coverage to rebuild your home with the same square footage and amenities.
Have you remodeled your home? Finished a basement? Added a new kitchen? Purchased a top of the line television? These are all great reasons to visit with your insurance agent and make sure that you have the right amount of coverage. Do you have any high-value items? A lot of jewelry or guns? Antiques or collectibles? You may need to purchase added coverage for these items.
And don’t forget to ask about flood insurance. Many homeowners don’t realize that standard homeowners policies do not provide coverage for floods.
