Is Your Home Properly Insured

One of the duties of being a home owner is making sure that you home is properly insured. Each year, when you receive you renewal notice and new policy from your insurance company be sure to compare the new policy to the previous one. Insurance providers are slowly but surely reducing benefits. Some providers are now not covering wind damage in coastal areas that may be prone to hurricanes. Earthquake damage has been eliminated by some providers.

For years insurance companies had "Guaranteed Replacement Cost Coverage". This is now, with some providers, limited to 20% over the face value of the policy. The unfortunate situation here is created when an insurance agent assigns a lower value to the home in order to keep their rates competitive. Even though the land may not need to be included in the rebuilding of a damaged home, you need to know the proper replacement cost to rebuild the structure itself. If you can not obtain an estimate of approximate cost per square foot to rebuild from a local contractor, it may be in your best interest to speak with a professional appraiser.

The contents of the home are generally valued at 50% of the face value of the policy. Take an inventory of the personal property in your home. Be sure to include furniture, clothing, artwork, jewelry, firearms, or any unique collectables. It is best to take pictures or a video of your contents and put it in a safe place such as a safe deposit box. After taking the inventory discuss with your agent the need for any additional coverage, known as policy riders, for items with a value higher than the standard policy limitations.

While appreciation is a welcomed benefit of owning a home, it can also contribute to you being underinsured. Make sure that the face value of your policy meets or exceeds the true value of the home.

I hope this information is helpful to you. As always if I can be of assistance with any Atlanta real estate needs, please don’t hesitate to contact me.