How Do You Make Sure You Have Sufficient Coverage for Your Home?

Just because you buy an insurance policy, it doesn’t mean you are sufficiently covered. There are many ways you can be underinsured and not even realize it. If you have questions about how much coverage you have compared to how much you actually need, it’s important that you speak to your insurance agent right away. Experiencing a significant loss will be even more traumatizing if you don’t have enough homeowners’ insurance in place to protect your belongings.

Here are some ways to ensure that your home is not underinsured.

Getting Coverage for Repairing or Replacing Your Home

There are two ways to insure the physical structure of your home. The first is for its actual market value. The second is for its replacement value. Keep in mind that the market value of your home may be much lower than what it would cost to actually replace your home. This could mean that you are dramatically underinsured if you choose to insure your home for its market value instead of its replacement value. It’s also a good idea to opt for replacement value coverage considering the continually rising cost of building materials. Additionally, ensure that you have the right types of insurance if you live in areas prone to floods, hurricanes, and earthquakes.

Coverage for Actual or Appraised Value of Your Possessions

When it comes to insuring your personal possessions, you will most likely be insuring most items for their purchase value. Many of the items in your home, like your furniture and appliances, will depreciate over time. There are other items, however, that you may want to insure separately. Antiques, fine jewelry, works of art, and collectibles are sometimes worth much more than what you paid for them. If you have items that are very valuable, you may want to have them appraised and then insure them for the higher value with an additional insurance policy.

Additional Living Expenses

There are situations in which your home may not be livable after a catastrophic event. You may require additional living expenses to find temporary housing while you are trying to have your home repaired or rebuilt. It’s important to have enough coverage while living in such areas so that you can live comfortably during this difficult time. Not having enough additional living expenses could mean that your money runs out before you can move back into your home. Your insurance agent will be able to help you determine how much ALE coverage will be sufficient for you.

Knowing you have the right amount of insurance coverage will give you the peace of mind you need when it comes to protecting your home and family. If you have questions or concerns, your priority should be talking to a reputable insurance professional. When you need answers, call our seasoned insurance experts at Pierce Insurance Group. Our extensive experience helps us provide you with the highest quality customer service possible. Contact our office today to get the answers you need.