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Reviewing Your Homeowner”s Insurance Policy Limits

With ever-fluctuating home values, are you confident your homeowner’s insurance policy limits are enough to cover the cost of rebuilding your home, should the unexpected happen? As a homeowner, you need to protect your investment. The following tips will help you ensure you have the coverage you need—eliminating worry and additional hassles.

Review Your Homeowner’s Insurance Policy Limits

Make sure that your home has sufficient coverage on an annual basis by contacting SIA Group to review your policy limits. Let us know if you’ve remodeled, made an addition or purchased an expensive item for your home.

We also need to know if you’ve made a major lifestyle change—for example, if you’ve gotten married or taken in an elderly parent who owns expensive heirlooms. With these lifestyle changes may come new items that need to be accounted for in case of a loss.

Understand Your Policy

Read your policy to determine what exactly it covers. Most cover replacement costs, or payment for the cost to repair or replace damaged property using similar materials. A homeowner’s policy also covers your home’s contents, but coverage will vary based on your policy. You will want to purchase additional insurance to cover jewelry, collections, artwork and memorabilia.

Purchase Additional Protection

A typical homeowner’s policy protects against fire, lightning, wind storm and many additional perils. However, most policies do not protect against damage caused by floods, hurricanes or earthquakes.

If you live in an area prone to specific natural disasters, it is a good idea to look into additional coverage available as a stand-alone policy.

Insure Home Improvements

When making a major change to your home, it is important to insure those changes. Be sure to let us know the specifics to ensure you have adequate coverage. If you remodeled a bathroom, we want to know whether you installed a standard bathtub or a whirlpool tub or if your countertops are now made of marble—it all adds to the value of your home.

Understand Rebuilding Costs

As a general rule, rebuilding a home costs more than an identical home would cost as a new construction. That’s because rebuilding includes a number of additional factors—like demolition, debris removal, worksite access and updated building codes—that can drive up the price of a rebuild. Don’t assume that the new construction cost of your home provides enough coverage. Consult a contractor for an estimate on your home today.

FAQs
What happens if I have a fire? How do I collect for my personal property?

Whether your policy pays for the replacement or just the actual cash value of your possessions, you will be paid for personal property that you can show you owned at the time of loss. It is a very good idea to keep an up to date inventory in a secure place. Also, to help you remember what you had, it is helpful to take pictures or video of each room.

If I have water damage from a rainstorm, am I covered?

No, a separate flood policy is needed to covers losses to your property caused by flooding. As long as your community participates in the National Flood Insurance Program (NFIP), you’re eligible to purchase flood insurance. We can assist you in determining if your community participates in the NFIP.

How can I be sure I have the right coverage?

A complete review of your policy is the only way to determine what property is covered and what perils are insured against. We can help you identify your risks and explain what’s included in a homeowners insurance policy, including the standard limits of coverage on property insured such as money, watercraft, and theft of jewelry, silverware and guns. Contact us today to learn how we can help you insure your home, auto and life.


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