Is it Time for Your Annual Checkup? Your Annual Home Insurance Checkup, that is. With home prices and an increase in building supplies, it may be time to check your home insurance to see if you have enough coverage.
What is Your Coverage?
There are several types of policies and which one you have may make a bit difference when you need to file a claim. “Replacement cost” covers your loss with what it would take to replace your home and/or belongings today; however, within your policy limits.
Another less attractive but cheaper type of home insurance coverage is “actual cash value” which takes into account the value at the time of loss minus wear and tear. Instead of paying full price for a replacement, the payment will be discounted.
Not everything is covered by your main policy and you may need a special rider for extra coverage. Jewelry, expensive electronics, a swimming pool or even artwork will need separate “replacement cost” coverage.
How Much Insurance Should I Have?
The value of your home has probably increased substantially even if you purchased it a few years ago. However, the coverage you’ll need to have on your home is not what the current value is or was when you purchased, but how much it will cost to repair or replace damage.
It doesn’t pay to scrimp on your insurance coverage; however, you can change the amount of your premium amounts by adjusting the deductible. Insurance companies also offer bundling home with your auto insurance for extra savings.
Disclaimer: When figuring out what is your best option for you and your insurance coverage, it’s always best to contact your insurance agent when it’s time for your Annual Checkup. This article is only a reminder it may be time to get with your insurance company and not a substitute for your insurance agent.