How Much Insurance is Enough?
The cost to rebuild your home is its replacement value. This can be very different from the estimated market value or actual purchase price. In most cases, it costs more to rebuild the home you own than to buy a new one. This is an important insight into why your Dwelling (Coverage A) limit is so important. Here is a checklist of things you should consider when you purchase homeowners insurance
– Determine the amount and type of insurance that you need. The coverage limit of your house should equal 100% of its replacement cost. If your policy limit is less than 80% of the replacement cost of your home, any payment from your insurance company will be less than the full cost to replace your home — you’ll have to pay the rest out of your own pocket. Also, decide if the personal property and personal liability limits are adequate for your needs.
– Determine which, if any, additional endorsements you want to add to your policy. For example, do you want the identity theft endorsement, fine arts endorsement or a jewelry endorsement?
– Once you have decided on the coverage you want in your homeowners insurance policy, consult us. We will be able to help you determine if there are any gaps in coverage you might not have been aware of, explain the details of the policy’s exclusions and limitations as well as recommend an insurance company that will live up to your expectations. It is critical that you provide us with accurate, updated information about your home and contents. If your dwelling limit accurately reflects your home’s true replacement cost, some companies will pay more than the limit if a covered loss is greater than the limit on your policy. Ask us if Home Replacement Guarantee or Extended Dwelling Coverage, is available in your state.
Prepare an inventory of personal property items, update it periodically, and keep it in a safe place outside your home, such as a safe deposit box at your bank. It will save you hours of time trying to list everything damaged or destroyed if you need to make a claim. It will also help ensure you don’t forget some items. We can advise you on ways to simplify the job of preparing a personal property inventory such as videotaping each room with descriptive information on the sound track.
It’s also a good idea to reexamine your coverages and limits from time to time, especially whenever you make additions or improvements. If you have any questions, please feel free to contact us.
Resources
Home Inventory Assistance
We believe it’s always wise to do an inventory of your home. In case there is a loss, this information will be readily available. Check out KnowYourStuff.org. It’s a free website and a wonderful resource.
Office of Public Insurance Council (OPIC)
Comparing policies can be confusing. OPIC has comparison tools that can help explain endorsements and policy forms.
Texas Department of Insurance
A good resource for industry news and consumer support
– Determine the amount and type of insurance that you need. The coverage limit of your house should equal 100% of its replacement cost. If your policy limit is less than 80% of the replacement cost of your home, any payment from your insurance company will be less than the full cost to replace your home — you’ll have to pay the rest out of your own pocket. Also, decide if the personal property and personal liability limits are adequate for your needs.
– Determine which, if any, additional endorsements you want to add to your policy. For example, do you want the identity theft endorsement, fine arts endorsement or a jewelry endorsement?
– Once you have decided on the coverage you want in your homeowners insurance policy, consult us. We will be able to help you determine if there are any gaps in coverage you might not have been aware of, explain the details of the policy’s exclusions and limitations as well as recommend an insurance company that will live up to your expectations. It is critical that you provide us with accurate, updated information about your home and contents. If your dwelling limit accurately reflects your home’s true replacement cost, some companies will pay more than the limit if a covered loss is greater than the limit on your policy. Ask us if Home Replacement Guarantee or Extended Dwelling Coverage, is available in your state.
Prepare an inventory of personal property items, update it periodically, and keep it in a safe place outside your home, such as a safe deposit box at your bank. It will save you hours of time trying to list everything damaged or destroyed if you need to make a claim. It will also help ensure you don’t forget some items. We can advise you on ways to simplify the job of preparing a personal property inventory such as videotaping each room with descriptive information on the sound track.
It’s also a good idea to reexamine your coverages and limits from time to time, especially whenever you make additions or improvements. If you have any questions, please feel free to contact us.
Resources
Home Inventory Assistance
We believe it’s always wise to do an inventory of your home. In case there is a loss, this information will be readily available. Check out KnowYourStuff.org. It’s a free website and a wonderful resource.
Office of Public Insurance Council (OPIC)
Comparing policies can be confusing. OPIC has comparison tools that can help explain endorsements and policy forms.
Texas Department of Insurance
A good resource for industry news and consumer support
Strive Insurance Group, Inc. | 9518 Anderson Mill Rd. #2P | Austin | Texas | 78729