With busy work and family schedules, many homeowners pay their home insurance premium when it is due without giving a lot of thought to the specific details of the policy they have purchased. With home values and the cost of building materials trending sharply upward, many homeowners may be surprised to learn that their current level of coverage may no longer be sufficient, should a covered loss situation occur. Homeowners who have not recently discussed their existing coverage with their insurance broker should plan to do so immediately for the following reasons.
When Changes to the Home Have Been Made
If your home has undergone any significant changes during your current home insurance coverage period, your existing policy may no longer be adequate for your needs. Homeowners may also find that some types of home improvements may actually reduce the cost of their policy, especially those that help to reduce the risk of loss. For example, installing new, more secure windows or upgrading or replacing the electrical panel could both be viewed as positive improvements that could lower overall risk and could result in lower insurance premium costs for the average homeowner.
When Questioning Cash Value Versus Replacement Cost
Homeowners who are not sure about whether they have cash value coverage or full replacement cost policies should also take time to speak with their home insurance broker as soon as possible. Many homeowners who suffer a loss while covered with a cash value home insurance policy find that their insurance settlement is not sufficient to rebuild their home because of the rising cost of building materials and labor. Taking time to meet with your home insurance broker will ensure that you fully understand your current coverage limits while providing you with an opportunity to make any changes to your coverage that may be needed.
When Determining Coverage for Contents
Contents coverage is another potential problem homeowners experience after a loss has occurred. While insufficient coverage amounts on some types of items, like jewelry or firearms, are certainly problematic, many homeowners also experience problems with their claims because they have not created or maintained a list of their furnishings, appliances, and general contents that can be used to help with replacement or reimbursement after a loss.
Taking the time to discuss contents coverage with your home insurance broker on a regular basis will ensure that you understand the coverage your current policy offers and helps you select appropriate insurance riders or umbrella policies to boost coverage where needed.
For more information, contact an insurance company like bear river insurance.