Is the Coverage on My Home Enough?

| December 09, 2022

How do I know if my home is insured properly?

There are several reasons why your home may be underinsured. For example, if you purchased your policy a long time ago, the value of your policy may no longer be sufficient to cover the current value of your home. Additionally, if you have made significant improvements or renovations to your home since purchasing your policy, the value of your policy may not reflect the increased value of your home. Finally, if the cost of building materials or labor has increased since you purchased your policy, the value of your policy may not be sufficient to cover the cost of rebuilding your home.

If you think your home may be underinsured, the best thing to do is to contact your insurance provider and discuss your concerns with them. They will be able to help you determine if your home is indeed underinsured and provide advice on how to increase your coverage if necessary. Speak with your agent to see if your carrier provides coverage above the stated amount of insurance.  Sometimes this is referred to as Guaranteed Replacement Cost Endorsement and may provide coverage over the stated limit.

It is important to make sure that your home is properly insured in order to protect your investment and ensure that you are financially prepared in case of a natural disaster or other unexpected event.  On open discussion with a professional insurance agent is a good way to make sure you are properly covered.