Get the Right Insurance Coverage So You Can Rebuild

| December 19, 2012

washed away home

Whether it’s a flood, an earthquake or a fire, Mother Nature’s whims can cause extreme damage to your home. Will you be able to rebuild if disaster strikes? Now’s the time to make sure your homeowners insurance coverage provides you with an adequate safety net. Let DexKnows help you find insurance providers with policies to protect what is likely your largest investment.

Determining value

The first step in choosing an insurance policy is understanding how much coverage you need. Experts say that the bottom line is you should ideally have enough coverage to completely rebuild your home and replace your possessions if the structure was completely destroyed, according to the Wall Street Journal.

This means having a good idea of how much it would cost to rebuild and replace your things.

Be aware that your replacement cost is not the same thing as the market value of your home, according to State Farm Insurance. It’s not related to how much you paid for your house or the land. And it has nothing to do with how much you owe on your mortgage.

Rather, to determine replacement costs, you should actually have an expert, such as a building contractor or replacement cost appraiser come into your home and tell you how much it would cost to rebuild and replace your possessions, says State Farm. He will be able to tell you that your unique arched doorway will cost more to replace than a standard one and take into account other features in your home.

Keep in mind that you should regularly update your policy as your home changes. For example, if you renovate a bathroom, the replacement costs will likely go up, according to State Farm.

Selecting coverage

Then it’s time to choose your policy.

There are a number of different insurance options that you can discuss with your insurance agent, according to the WSJ. Which policy you choose will vary based on your home and your needs. It’s wise to discuss different policy options with your insurance agent to find the coverage that best suits your situation.

Ultimately, protecting your property investment is about taking the time to understand the true replacement value of your home and making sure that your coverage will allow you to rebuild. Look to DexKnows local listings to find insurance providers, builders and appraisers in your area that can give you the detailed information you need to make an informed choice.

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