How to know if you have enough homeowner’s insurance.

You never know if and when something will happen — whether it’s a big catastrophe or something less destructive – so you need to be prepared!

It’s essential to choose the right company, price, and coverage for your specific situation. 

Remember that homeowners insurance is a collection of different kinds of coverage such as fire, theft, liability, and windstorm wrapped up into a single policy.

Whether you’re a current homeowner who may need to upgrade your coverage or a potential new buyer who is purchasing home insurance for the first time, review these steps, so you have the right coverage for YOU:

How Do You Determine Coverage?

Your coverage should be based on the square footage of your home, but it must also factor in how much it will cost per square foot to rebuild in case of disaster.  

Your insurance company will most likely require you to purchase coverage that insures 80% of the home’s replacement value.

Be sure to consider everything you have inside the home, which will also need to be replaced in the event of a disaster.

Do You Have Enough Coverage?

Get current information about what your home is worth today and how much it would cost to rebuild it.

Make sure that your deductible is set at a price that you can afford if you must rebuild or do extensive repairs to your home.

If you’ve got a unique art collection or a home office with equipment and supplies, you should be sure to let your agent know so that they can inform you about any additional riders that might be necessary.

What About Flood Insurance?

Being covered for the water damage from a flood in your basement is different than having flood insurance.  Talk to your insurance agent about the difference and make sure you’re covered if you end up with water in your basement.

Do You Need to Upgrade?

For current homeowners, meet with your insurance agent to discuss your current coverage and let them know about any new home improvements or any new possessions that should be included in your policy.

Your agent will come out and document these upgrades, take photographs, and let you know if you will need additional coverage.