Is There Something Your Insurance Agent Isn’t Telling You?

Or – When was the last time you actually reviewed your homeowner’s insurance policy?

With the recent surge in appreciation of home values, and the number of people making capital improvements to their homes, many homeowners might be surprised to discover that they are now woefully under-insured. If you are like most homeowners, when you receive your annual premium notice, you pay it, but you never actually read it. That could be a costly mistake.

If you have lived in your home for several years, if you have updated, remodeled, or added on, or if you live in an area of the nation that experienced a boom in home appreciation, make haste. Go dig out that insurance policy and determine just exactly how much payout there would be if your home had to be replaced. You may be shocked.

But don’t just look at the dollar figure. Read the fine print – what exactly is meant when it states that you are insured for “replacement value”? It might not mean now what it meant when you originally took out the policy. Or you might not be insured for “replacement value” at all. Some insurers have been cutting back on what their policies actually cover, so the dollar figure your home is insured for may not actually be adequate to rebuild your home if the worst happened.

It’s not the most exciting reading in the world, but it may be the most important reading you’ve done in a while. Comparing your current policy with previous years’ policies is an easy way to tell what has changed. If you dread the thought of trying to make sense of it all, or you have no idea where your policy is, at least call your agent for a friendly chat.

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