When was the last time you reviewed your insurance policies? You may have renewed your personal auto or homeowner’s policies with just a glance at the information before sending the renewal paperwork back in. That’s fine if nothing has changed since last year, but is that really the case?
Even if you did nothing new to your home within the last year – no new swimming pools… no new additions or anything- your home’s value has changed. Renewing at the same amount of coverage as last year may not be enough to cover your entire home in the event of a claim situation.
Standard policies require that you have at least 80% of your home’s replacement value insured. It is important to realize that the replacement cost of your home is by no means the same as the real estate value. It is the amount it would cost to fix and repair your home if it were to get damaged. It is determined on the cost of lumber and other building materials and the amount you would need to fix your home back to its original value.
Therefore if it would cost more this year to replace your home than it did last year (which it probably will considering the decrease in natural material availability), you may need to increase the limits in the first section of your policy or risk not having the coverage you think you have.
If you are concerned that you may have renewed your policy without the amount of coverage you need, we can certainly help by determining your property’s replacement value and deciding what limit your policy should be set to. We can contact the carrier and have your policy endorsed accordingly. Just call us and connect with one of our knowledgeable insurance agent and we can discuss it.
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