Research studies of home insurance in America find that up to two-thirds of the homes are either not insured or underinsured. Very few homes have no insurance coverage; however, a study by CoreLogic concluded that 60% of American homes are underinsured by an average amount of 20% of the value.
The median home value in Edina is $425,000. The statistics predict that three out of five of the homes in Edina are underinsured by as much as $85,000.
Another startling statistic reported on Yahoo is that 58% of Americans have less than $1,000 in savings.
If these are your circumstances, what happens if a natural disaster or a fire destroys your home completely? How will you be able to come up with potentially a missing $85,000?
How do you know if you are underinsured?
Work with your agent at Central Lakes Insurance Brokers, serving Edina, MN and the surrounding area, to find out if you are underinsured and then consider the benefits of having replacement cost coverage.
Replacement Cost Coverage
Replacement cost coverage is designed to be able to replace a home that is damaged and bring it back to a like-new condition that is as close as possible to how the home was before it was damaged. Replacement cost coverage is usually a better choice for coverage because insuring a home for actual value may be far less than what is needed to rebuild a home if it is destroyed.
Most people benefit from having replacement cost coverage. To make sure the amount of coverage is kept up-to-date with current prices, it is a good idea to have a home insurance review regularly, at least once per year.
To get a home insurance review and a quote for home insurance, contact your agent at Central Lakes Insurance Brokers in Edina, MN by calling our office or use the convenient online rating tool.
Determining how much home insurance coverage and making sure you have enough in Edina, MN is going to be on a case-by-case basis. However, there are some things you can discuss with your agent at Central Lakes Insurance Brokers to ensure adequate coverage.
- Determine the Coverage for Your Home Structures: You want your limits to be enough to cover rebuilding your home. The current market value or the amount you paid for your home may not be the cost to rebuild, and there are some other things to keep in mind. Factors that affect rebuilding costs include square footage and local construction costs. Certain details will also impact costs, including the type of roof, number of bathrooms, style of house, and exterior wall construction. If there are unique features, such as fireplaces or arched windows, these need to be taken into consideration.
- Determine How Much for Your Possessions: In order to have a full understanding of how much coverage you need for your personal belongings, you need to do a home inventory. This is also a good record to have should you need to file a claim. Take stock of any expensive items, such as collectibles, furs, and jewelry. There may be limits on these items, and you could need additional insurance for full coverage.
- Determine Additional Living Expenses: Most policies will provide about 20% of the insurance on your home for additional living expenses while your home is being repaired, but you can also increase this amount.
- Determine Liability: Your liability coverage should be enough to protect your assets. Most policies will provide $100,000 in coverage, but you should have more if you have savings and investments that are worth more than this.
Contact Central Lakes Insurance Brokers, serving Edina, MN, to get a quote on home insurance.
Life is quite unpredictable, and you will always have to adjust accordingly. For instance, you need to come up with ways of keeping up with your family’s finances and saving for emergency situations. However, keeping your home insurance coverage from Central Lakes Insurance Brokers up to date is also essential.
Knowing that your home in Edina, MN is always protected is a stress reliever when disaster strikes. It is important to keep up with the changes to your policy and regularly review it with an insurance agent. So, when should you update your home insurance policy?
When You Remodel Your Home
If you are building a new deck or overhauling your kitchen, make sure that you consult your insurance agent to understand the implications of such an action on your policy. Typically, all major home renovations will boost your home’s value which means they can also hike up the cost of rebuilding your home in the event of a disaster. The primary reason why you bought your home insurance was to allow you to repair or rebuild your home if it gets damaged. Therefore, make sure that you contact Central Lakes Insurance Brokers for re-assessment of your home’s value after significant renovations.
When You Make Changes to Your Lifestyle
Certain lifestyle changes may alter risk tolerance, and that will affect how much home insurance coverage that you deserve. You should speak to your home insurance agent in Edina, MN after a significant lifestyle change to determine how it affects your policy. For instance, talk to your agent if you have quit smoking or if you have retired.
When You Purchase High-Cost Items
A standard homeowners’ insurance policy not only protects your home’s structure but also covers your personal valuables inside the house. However, you need to keep in mind that the policy only protects your items up to a certain limit. Therefore, you should update your coverage when you purchase that gigantic flat screen television or when you purchase a pricey necklace.
Contact us today for your home insurance policy.