When Your Homeowners Insurance Isn’t Enough ?


House fire

Consider this startling fact: 66 percent of U.S. homeowners were underinsured by an
average of 18 percent. This means that if these dwellings sustained a total loss, the homeowners would not have enough insurance reimbursement to replace their home.   It is critically important that your home is “insured to value.” This means that you have sufficient insurance to cover the full value of your home so that if you have a loss, you can rebuild an identical home, using the same materials. This is known as “replacement cost.”

For example, have you recently:
• Added square footage to your home?
• Built a garage, porch or other attached structure, or enclosed a porch?
• Upgraded your kitchen counter or cabinets?
• Remodeled a room in your home?

If you answered “yes” to any of these questions, it is important that you let your independent insurance agent know as soon as possible. Your agent will increase your coverage so that in the event you have a loss, you will be adequately protected. Periodically, your insurance company may need to increase your homeowners insurance for another reason. Escalating construction costs and oil prices would increase the cost of rebuilding your home to its original state. You may wonder why if a current market downturn, in which home prices could be declining, you would need additional insurance. As previously noted, insurance to rebuild your home is based on construction costs, not current home values.

It is a good practice to contact your independent agent at least once a year—regardless of
when you purchased your policy—to discuss any improvements you have made to your home or those in the planning stages. Because being prepared is the essence of being protected.

C.L. Hollis has been insuring homes in the New England area for 29 years.

Call us today Wareham office  508.295.9500   Canton office 781.344.8578


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