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Can You Afford To Rebuild
Do you remember how your insurance agent
determined the amount of homeowners' insurance you needed to
properly protect you from a total loss of your home?
The Insurance Information Institute reports that many American home
owners do not know what criteria were used to establish the coverage
on their policies. In fact, many not only lack financial protection
for the equity in their homes, but for personal property as well.
The last thing you expect after paying homeowners' premiums for
years is that your insurance coverage is not adequate to rebuild
your home in case of a total loss. It usually happens because
lenders only require home buyers to carry enough insurance to cover
the value of the mortgage. Then, in the event of a catastrophe, the
lender's investment is covered. Unfortunately, this required
insurance is only for the lender's money; it does not cover the
homeowner's personal property or their equity.
When deciding on insurance, home owners should carry enough to cover
the replacement value of the home and all its contents. The key word
is replacement. As your home appreciates, so will its replacement
cost, so it is a good idea to review your policy each year or two,
adjusting the amount of coverage as necessary.
A word of caution, however; do not insure for more than the value of
your real and personal property, because an insurance company will
not reimburse more than the replacement value of the property.
Many home owners tend to underestimate the value of their property.
When calculating the replacement cost of your home, you need a
professional estimate of what it would take to rebuild it at today's
cost for labor and building materials. To be adequately protected,
you will want to insure your home for 100% of its replacement cost.
Few home owners think about their policies until disaster strikes.
It's wiser to be proactive; get the coverage you need before you
need it.
Copyright 2007 PropertySource Network |
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Jeannie Hamilton
ABR, CRS, e-PRO, GREEN, GRI, SRES
Broker/Owner
Hamilton Properties
1100 Deer Trail Road
Boulder, CO 80302-9437
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Office: |
303-443-9221 |
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Cell: |
303-817-9988 |
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Fax: |
888-449-3611 |
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Toll Free: |
800-443-9212 |
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Email: |
jeannie@jeannierealtor.com |
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Email
webmaster@jeannierealtor.com with
questions or comments about this website.
Copyright © 2012 Jeannie Hamilton, Inc
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Last Updated:
January 24, 2012
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