With ever-fluctuating home values, confidence in your homeowners insurance policy limits is more crucial than ever. Is your policy limit sufficient enough to cover the cost of rebuilding your home, should the unexpected happen?
It may come as a surprise, but the cost of rebuilding your house may be higher than the price you paid for it or the price you could sell it for today. As a homeowner, it’s important to protect your investment. The following tips will help you ensure you have the coverage you need—eliminating worry and additional hassles.
Understand Your Policy
Read your policy to determine what it actually covers. Most home insurance policies cover replacement costs or payment for the cost to repair or replace the damaged property using similar materials. Remember that a homeowners insurance policy covers not just the structure, but your home’s contents as well, though coverage varies based on your policy. Make sure you know your policies limits and purchase additional insurance to cover jewelry, collections, artwork and memorabilia.
Review Your Home Insurance Policy Limits
Make sure that you have sufficient home insurance coverage on an annual basis by contacting us to review your policy limits. Remodels, additions and even the purchase of an expensive item can influence the amount of necessary coverage.
We also need to know if you’ve made a significant lifestyle change—for example, if you’ve gotten married or taken in an elderly parent who owns expensive heirlooms. With these lifestyle changes may come new items that need to be accounted for in case of a loss.
Purchase Additional Protection
A typical homeowners insurance policy protects against fire, lightning, wind storm and many additional perils. However, most home insurance policies do not protect against damage caused by floods, hurricanes or earthquakes. If you live in an area prone to specific natural disasters, it is a good idea to look into additional coverage available as a stand-alone policy.
Insure Home Improvements
When making a major change to your home, it is essential to talk to us about insuring those changes. Be sure to let us know the specifics to ensure you have adequate coverage. If you remodeled a bathroom, we want to know whether you installed a standard bathtub or a whirlpool tub, if your countertops are now made of marble or any other major changes – it all adds to the value of your home.
Understand Rebuilding Costs
As a general rule, rebuilding a home costs more than an identical home would cost as a new construction. That’s because rebuilding includes several additional factors like demolition, debris removal, worksite access and updated building codes, all of which can drive up the price of a rebuild. Don’t assume that the new construction cost of your home provides enough home insurance coverage. Consult a contractor for an estimate on your home today.
Consider Construction Costs
Construction costs are on the rise, so your policy should reflect that. When reviewing your policy, consider the rising cost of materials, labor and supplies, and set your limits accordingly.
Don’t play the guessing game. Contact Beimdiek for assistance in determining the value of your home. We will work together to create a homeowners insurance policy that will protect your investment inside and out.