Your home is your greatest assest. That being said, you want to make sure you have the proper protection. If your house burns down, the last thing you want to know is that your homeowners policy is paying less than you thought it would to rebuild your home. This is called being underinsured.
To avoid these unpleasesant surprises, here are a few tips you could follow to make sure you aren’t underinsured:
1. Find out how much it would cost to rebuild your home.
2. If you already have homeowners insurance, make sure you have enough.
3. Make certain the value of your policy is keeping up with increases in the cost of rebuilding.
4. Find out whether you have a replacement cost policy for the dwelling.
5. Find out whether building codes have changed in your area.
6. Make a list of all your personal possessions and estimate the value at its current prices.
7. Find out how much insurance you have for the contents of your home.
8. Consider replacement cost coverage for your personal possessions.