Insurance coverage can vary widely. If you selected a lower cost policy there may be important gaps that were overlooked. This article is a guide to the coverage options you should review before you have a disaster.
Are You Under Insured To Rebuild After A Loss?
When you have a mortgage the lending institution will require you to carry enough insurance to cover their loan if your home is destroyed. It may not be enough to rebuild. Sit down with your insurance agent and ask them to review your policy on the basis of replacement cost.
Keep in mind that you will have to cover the deductible amount plus any additional expenses if you are not insured on the basis of replacement costs. Even if you are covered for replacement, it’s up to you to see that it is adjusted as construction costs increase over the years.
What About Your Contents And Personal Property?
Your homeowners policy will also have coverage for the contents of your home. Every policy usually has standard values to cover this. It’s up to you to add coverage for any special items of value that you have.
Do you collect antiques? Maybe you have a hobby with costly things to replace. Consider reviewing your personal property and possessions with your agent so you won’t be surprised when the adjuster tells you they aren’t covered.
Consider preparing a home inventory. One of the simplest methods for determining the value of your personal property is by preparing a home inventory.
Not All Damage From Water Is treated The Same
The Insurance Information Institute reports that water damage and freezing accounted for more than 45 percent of all homeowner’s property claims. However the source of the damage may or may not be covered. It’s your job to find out.
There’s a difference between water damage from a pipe that bursts and water damage from a storm or natural flood. You can’t assume that replacement coverage will take care of it.
Every homeowners policy will include exclusions. Quite often these are not obvious to homeowners. Your home may be located in a flood zone or other natural disaster area. Unless you understand the exclusions in your policy you could be at risk for a major loss.
How Much Insurance Do You Need? Answer these Four Questions.
To determine your insurance needs you should answer questions in these four categories.
1. What is the value of your home’s structure for replacement (coverage A)?
2. What is the value of your personal property based on an inventory of the contents?
3. What will it cost for additional living expenses if you need to live elsewhere while your home is being repaired.
4. What is your liability coverage to others if you are sued when someone is hurt on your property?
Regardless of the property damage to your home, Struck And Sons will do everything possible to restore your property and your life. Our reputation speaks for itself.