When you invest in a home, you want to protect it with a homeowner's insurance policy. Here are three steps you can take to make sure that your policy has enough coverage to actually help you out should you need it.
#1 Get A Formal Appraisal Of Your Home
If you are not sure of the value of your home, the first thing that you should do is have a professional home builder or a professional appraiser inspect your home and let you know the value of your home. You are going to want to know the sale value of your home, as well as the cost to rebuild your home from scratch should it need to be completely replaced.
These can be two different numbers and also represent two different types of replacement homeowner's insurance coverage. You can get insurance that covers the market value of your home or the actual replacement cost of your home; it is best to get whichever type of insurance is greater for your individual situation.
#2 Inventory Your Belongings
The second thing you need to do is make an inventory of everything in your home, as well as its current value and replacement value. This can take some time, so start in one room or area of your house and slowly work your way through your home in a systematic manner. As you create this list, look for receipts to verify value of items or look up the value of items online. Also, be sure to take photos and videos of all of your belongings to create a log of your belongings.
You may be surprised as you work your way through your home how much it would cost you if you had to replace everything and start over from scratch.
Once you are done with your inventory list, add up the value of everything. If your insurance offers different amounts of coverage for electronic or artwork, for example, add those items up separately.
If you find that your coverage as it stands would not allow you to replace all your items, you may need to increase your coverage limits. If you have specific items where the value is not covered, such as electronics or artwork, you may need to add extra coverage to your policy to cover the value of that specific type of item.
Always check and make sure that your homeowner's insurance policy would really allow you to start over if necessary with the coverage limits that you have in place. For more information, contact a business such as Skipton Claims Management.