Make Certain your Home Isn’t Underinsured

January 22, 2014

Most home owners understand the importance of insurance, but do you have sufficient coverage? It is easy to underestimate your coverage needs which can lead to problems after a natural disaster or other covered loss. If you are pondering your insurance coverage amounts, keep these tips in mind:

• Properly Estimate Your Home’s Replacement Cost – There are websites and smartphone apps available that can help you determine what your cost to replace may be. In addition, your insurance agent has tools designed for this calculation.
• Understand the Difference between Replacement Cost and Market Value – While your property may gain or lose value over time, don’t mistake that for the replacement cost.  Make sure you have an adequate amount of insurance to rebuild.
• Another Market Value Problem is the value of land.  You certainly don’t want to over-insure by including the value of land.
• Read and Ask Questions About Your Policy – While it may be tedious and uninteresting, you need to understand your policy so you know what coverage you have and, as important, what you don’t have. Your agent is a valuable resource.

There is no reason to struggle with determining your insurance needs. If you are located in Austin or the surrounding areas of Texas, contact Central Insurance Agency today. We would love to help!