The only thing worse than seeing your beloved home get damaged in a fire or storm is discovering that you don’t have enough insurance to cover the repairs or rebuild. Being underinsured, or not having enough coverage, is no laughing matter. You could either end up having to pay a lot of money out of pocket or settling with the insurance company for what your policy pays out and moving on to a new property. No matter what, the stress and feeling of overwhelming loss can be devastating.
So, how can you be sure that you aren’t underinsured? Here are a few tips.
Update Your Policies Yearly
One method of making sure that you have enough insurance is to update your policies yearly. Towards the beginning of every year, sit down with your insurance agent and go over your coverage. Since the overall worth of your home can change frequently, based on what similar houses in your neighborhood are selling for, this is a good way to keep everything updated and avoid having to deal with an underinsured crisis.
Know the Replacement Versus Repair Cost of Your Home
When it comes to your homeowner’s insurance, there are two important amounts that you need to know. They are the replacement cost of your home and its repair cost. One consists of how much it would take to completely replace your home from scratch, starting at the foundation and working upwards, while the other is simply how much it would take to repair certain parts of the structure.
Why do these amounts matter? If your home is damaged in a fire, you may need to repair it entirely, while something like wind damage may only need a few repairs. In order to ensure that you’re covered no matter what happens, check with your insurance agent regarding your coverage.
Make Sure Your Policy Riders are Updated
Speaking of updates, if you have any additional riders on your homeowner’s insurance policy, such as those for pricey jewelry, art, or collections that are worth more than your standard coverage allows, you need to make sure that those are kept up to date well. If you purchase anything new for your collection, realize that the value of some of your items has increased, or have any additional changes that need to be made, make sure to do so. There’s nothing worse than losing some of your expensive items only to find that they weren’t insured for enough money.
Ask About Flood or Windstorm Insurance
On top of making any required financial-based updates to your insurance policy, it’s also important to see if there are any other types of policies that you need. For example, homeowners in North Carolina, a state that’s prone to flooding and hurricanes, may need to have flood or windstorm insurance just in case. After all, standard homeowner’s insurance policies typically won’t cover flooding or high wind damage in most cases, and you need to make sure that you have everything possible in place.
Have Questions? Contact Charlotte Insurance
Want to ensure that you’re not underinsured? Contact Charlotte Insurance. Our agents can explore and explain all available options to you and put together the coverage plan that you need.