PROTECTING YOUR HOME: DO YOU HAVE ENOUGH INSURANCE?!? Even though a home is the largest investment most people make in their lifetimes, it is estimated that three of every five homes in America are underinsured! How much insurance is enough? The amount of insurance you purchase should be based on your home’s reconstruction or rebuilding cost, NOT its purchase price, market value, land cost, or amount of mortgage you hold. The cost to reconstruct your older home with similar quality materials will be more expensive than using modern materials (like plaster vs. drywall). The cost to rebuild your newer home according to its original specifications will be greater, sometimes much greater, than its purchase price. Many “added” costs must be considered. What “added” cost affect rebuilding? -Home improvements and repairs needed as part of the rebuilding process -Unique materials that are difficult to locate and expensive to duplicate -Compliance with new or revised building codes -Damaged areas and debris that must be removed or demolished -Access hindered by trees, other homes and fences What happens if your home is underinsured in the event of a disaster? You’ll have choice. You may elect to pay the repair or replacement costs that exceed your policy limits, or you may settle for a home with lesser quality features. What can I do to make sure my home is adequately protected in the event of a disaster? Your independent agent is a great resource with the tools to help you estimate your home’s rebuilding and reconstruction costs. Make the call or stop in today. After all, insuring your home to its proper value starts with you! Matt Nelson, President American Advantage Insurance -Nelson Agency, Inc. mattn@ameradv or 262.284.4211
Posted on: Tue, 25 Mar 2014 12:14:15 +0000