The neighborhood, the amenities, the square footage – you carefully considered everything about your home before purchasing it. So carefully that perhaps your insurance policy was just an afterthought.
However, a home is one of the most valuable purchases you’ll make in life, so it only makes sense to protect it with adequate insurance coverage. But, what exactly is adequate for your home and why? The general rule of thumb is this: You insure your home for what it would cost to rebuild at today’s prices, using today’s building codes and standards.
In the insurance world, we generally refer to this as the “cost to rebuild,” and it’s essential to understand why it’s important. I’ve addressed three insurance misconceptions that should help.
The last thing any property owner wants is for their insurance policy to fall short when they need it. That’s exactly what might happen if you buy into any of these insurance misconceptions.
Instead, work with an independent insurance agent to help ensure you get the home coverage you want – not too little and not too much. An estimate of what it would cost to rebuild your home from a contractor or builder in your area may help, but it’s not necessary. Your agent will talk to you about the square footage, upgrades, special features and other aspects of your home to build the policy you want.
Remember, your insurance doesn’t buy you a house. It repairs or rebuilds the one you’ve got. So, be sure your homeowners coverage reflects the true cost to rebuild.
About Erin Eudy and Riskguard Insurance Solutions, Inc.
Erin Eudy is an insurance agent with Riskguard Insurance Solutions, Inc., an independent agency that delivers custom-tailored insurance and risk management solutions in California and neighboring states. She works closely with clients to understand their needs and provide coverage that fits the whole picture, making sure they’re protected at home, on the road and beyond. Choice is essential to delivering the well-rounded coverage her clients want. As an independent agency, Riskguard Insurance Solutions has access to an array of highly acclaimed insurance companies. The family corporation has more than 85 years of accumulated experience in the insurance industry.
Let the world know what you think, but do so responsibly. Comments are moderated and we will not post personal attacks, obscene language or inappropriate material, comments with links, or comments from people under the age of 18. If you have a question, check out our Comment Submission Guidelines.