IS ENOUGH ?
With the recent fire in Acacia Cross- ings, you may be asking yourself, does my insurance coverage fit my needs? Do I have enough coverage to replace my home in the event of a serious loss? What factors affect my premium? Ask yourself these questions: • Have I recently remodeled or improved my home? • Has the rate of inflation risen since my last appraisal? • Have building construction costs increased? If you answered “yes” to any of them, it is time to reassess your policy to ensure your Homeowners Insurance coverage is commensurate with your home’s value. As you consider these issues, it is impor- tant to understand that real estate values measure the market value , or selling price, for a home. For insurance purpos- es, it is important to estimate the current replacement cost , which is the amount needed to hire a contractor to repair the damage or to rebuild the home to its pre- loss condition. Dwelling replacement costs used by insurance companies do not include the value of the land, as it is not damaged in the event of a loss. Building contractors, professional re- placement cost appraisers and insurance agents are good sources for obtaining an estimated replacement cost for your home. Once you know the estimated cost to replace your home, you can decide how much insurance coverage fits your needs.
Usually, coverage for your personal prop- erty is a set percentage of the dwelling amount. Make sure that you have enough coverage to replace your personal prop- erty as well. You should also consider other policy endorsements such as sewer and drain backup coverage and cover- age for personal articles with high values such as jewelry, fine arts and collect- ibles. You may want to consider higher personal liability coverage if you have a pool or a need for Flood Insurance, which is provided by a separate policy. In addition to the amount of coverage you decide to purchase, your premium is impacted by optional endorsements you select, your claim history, whether you have a security system, the amount of your deductible, company longevity and multiple policy discounts such as home and auto. Keeping your policies with one company will help maximize your discounts. Take the time to review your insurance coverage with your agent every 12-18 months to ensure you have adequate cov- erage and that you are prepared should a disaster strike your home – and yes, it can happen to you.
17
Powered by FlippingBook