It is a good idea to have home insurance that covers the replacement cost for rebuilding a home if it is entirely destroyed. However, insurance industry studies find that the majority of homes are either not insured or under-insured. Here are some of the reasons why this happens and how homeowners can avoid this problem.
Lack of a Regular Home Insurance Review
Taking good care of a home requires annual maintenance. This maintenance should include having an annual review of the insurance coverage with the help of your agent at BLC Insurance, serving Urbandale, IA and the nearby areas. This free review will help homeowners take a good look at the current insurance coverage that they have in order to make sure it is adequate for their needs.
Undervaluation of Replacement Costs
Home construction costs that include labor and materials have a tendency to increase over time. If a home experiences a catastrophic loss, this may be caused by a natural disaster that affects a wide area. Because of the sudden increased demand for repair and reconstruction of homes, the price of getting this work done is automatically higher than normal. Using a replacement cost amount that does not include this factor of increased prices in the aftermath of a natural disaster, means that the coverage will be inadequate.
Not Protecting Personal Property
Home insurance may not be sufficient to cover the value of personal property in the home. Review any personal property limits under your home insurance policy to make sure there is adequate coverage for items in the home. If you have rare and valuable items in your home that exceed the amounts of these limits, it is a good idea to get additional insurance coverage for them.
Check with your agent at BLC Insurance in Urbandale, IA to discuss home insurance and to get an insurance review to make sure your coverage is adequate.