Monday, March 28, 2011

How do I know if my home is underinsured?

(Originally published October 2010)

The Insurance Information Institute recommends the following:

It's a good idea to insure your home for the cost of rebuilding it. Check your homeowner's policy to see the maximum amount your insurance company would pay if it had to be rebuilt.

Find out what it would cost to rebuild your home.  Your insurance agent can calculate rebuilding costs for you or you can hire an appraiser (call or email me for references).  Make sure your insurance agent knows about all improvements you've made, such as a deck or larger kitchen. 

Make sure the value of your policy is keeping up with increases in local building costs.  Many policies include an inflation guard; if yours doesn't, consider purchasing one.

Find out if you have a replacement cost policy for your house. If you own an older home, you may have a modified replacement cost policy.

For the contents of your home, find out whether you have replacement cost or actual cash value insurance.  Check the limits on certain personal possessions, such as jewelry. Consider buying an endorsement to insure valuables separately.

If you have any questions, or need capable and trustworthy representation, please call me at 912-352-1222.

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