Are you happy with your home insurance policy and what it covers? Do you even think about it? While you hopefully don’t – because that means you haven’t had any issues – it is extremely beneficial to review what your policy does and doesn’t cover to make sure you are prepared in case of an emergency. Because unfortunately we live in a world where things like tornadoes (trees falling onto your roof), extreme rain storms (flooded basements ruining everything you had stored down there), and terrible people (robberies) exist, and without any way of controlling these things, covering yourself with a good insurance policy will make all the difference and provide peace of mind for you as a home-owner.
According to this Fox Business article, experts recommend evaluating these three areas:
Rebuilding Your Home
This is the big one that everyone hopes they will never have to encounter – if your house is completely destroyed and needs to be replaced. The article says that the total cost that your policy is covering should include materials and labor, which sometimes can cost more than the value of the home. Make sure your policy isn’t capped at the originally stated value of the home – otherwise you will have to pay the difference in cost.
Replacing Your Belongings
It definitely sounds tedious, but it’s a good practice to inventory your belongings and make sure you have everything in there. That way you won’t realize later on that you forgot to claim your grandmother’s diamonds when you spoke to the insurance company years ago. Take pictures and videos to make it easier. Experts also advise to make sure you have replacement cost coverage instead of actual cash value to get the most value for your possessions. They also suggest adding a valuable personal property policy as they have broader coverage.
If you have something that may cause more harm to people in your home (i.e. a trampoline or pool), experts recommend buying an umbrella policy that can cost a minimal amount each month but adds more protection.
While it’s not fun thinking about the worst of what can happen, it’s practical and definitely worthwhile. It may help to sit down with an insurance agent to be clear on everything and make sure you are getting the best coverage for you and your needs.