Know How Much You Need
Like many people, you have home insurance. You feel protected in the event
of some disaster. What you probably don't think about is if you have enough home
insurance. People believe that once they have paid for their home and have established the
value of the home that is all they need to do. The years go by. You upgrade your kitchen
cabinetry, put in a new fire place, upgrade your windows, or even add a room or section
addition to your home. After all you want to make it your home and style it according to
your wishes. Did you forget to have your home's value re-assessed after you finished your
basement? If not, you may find that your home is insured for $15,000 less than it should
be (for that example).
Getting adequate home insurance coverage.
The main problem causing the shortage of home insurance is that the home owner doesn't
make it clear to the insurance agency of all the features that may be unique to the home.
Does the home have for example a Jacuzzi, a marble fireplace, customized porch, special
wood trimmings inside or outside and other such items. Don't forget the finished attic or
basement. Those are all factored into figuring out how much your policy should cover. Your
premium will be higher for the additional $40,000 or whatever the amount beyond the base
coverage is. But, would you rather lose all that value up in smoke should a fire or other
unforeseen incidents happen? Most will agree that an additional $50 or $75 a year (other
other figure) is well worth the extra protection you get to replace your loss should it
happen. It's not a pleasant thing to think about. However it will be far less pleasant if
you lose $30,000 in upgrades if a disaster strikes.
|DID YOU KNOW?
|Estimates of 65% or more of homes in America are under
insured by as much as 3040%. In recent Californian fires, people found that when
they lost their homes they didn't have enough coverage to replace the expensive
customizations made to their homes. Don't let yourself fall victim to this sad
Here are some home items that you'll want to ensure are covered under your
home insurance policy and to ensure that their value is covered:
- Home customizations
- Oak flooring
- Special bathroom appointments (Jacuzzi, special tiling, gold fixtures)
- Upgrades of interior and exterior wood trimmings
- Costly window upgrades
- Roofing upgrades
- Room additions
- Finished basement or attic
- Kitchen upgrades
- Solar panels and other energy efficient upgrades
- Built-in Ethernet system for whole house connectivity
- Hot water heated floors
There are of course many other home upgrades that you could list here.
Hopefully this will give you an idea of what to look for to include in your home insurance
policy. Thorough housing insurance coverage will save you from added headaches in the
event of fire damage, storm damage, tornado destruction, and/or flood.
Don't forget to also include all your indoor valuables (furniture, stereo,
computers, antiques) and valuables in your garage (tools, garden/lawn tractor, expensive
Other home insurance issues to factor in.
Be sure that you get a policy that will compensate for inflation and that it will cover
current costs associated with replacing expensive home upgrades. Also be sure to take an
inventory each year of all your personal belongings. That will help ensure that you don't
get surprises if the inevitable happens. Have you bought new sculptures or paintings
recently or rare antiques? What about your precious jewelry or expensive wrist watches or
costly fine clothing? Ensure that they get insured under your home insurance policy.
If your current insurance agent won't help you with some particularly
important costly item(s), you'll need to locate a home insurance coverage policy from
another insurance company that will cover your home valuables and your house itself.
It's also a good idea to get extra coverage for your cleaning person or
groundskeeper. It's also good to have some coverage for visitors in the event they get
hurt while visiting you. You never know when someone may want to sue you for damages. In
this day of lawsuit-crazed people, it's good to be a bit prepared.
Talk with your home insurance agent to identify deficiencies in your
current home insurance policy. You'll have that peace of mind afterwards.