Most property owners have some sort of homeowner’s insurance coverage. But how do you know that you have enough? Here are three things to look at to determine whether or not your coverage is adequate for your needs.
Evaluate the Current Replacement Cost of Your Home
One of the easiest ways to determine whether or not you have the appropriate level of homeowner’s insurance coverage is to have your agent run a replacement cost estimate. This type of calculation helps determine what it would cost to build your home from the ground up in today’s rates—not the amount that you purchased the home. It also takes into account any upgrades or changes you’ve made to the residence. If this level is less than your current policy amount, it is time to consider a change.
Evaluate Your Liability Risk
Another way to determine whether or not you have the appropriate level of homeowner’s insurance coverage is by taking a look at your risk. Do you have guests at your home frequently? Do you own a small business or engage in a hobby that could pose a risk to others? Do you have kids who might accidentally break a neighbor’s window with a baseball? If any of these scenarios apply to you, it is probably time to talk to your agent about raising your liability limit.
Make a List of Your Belongings
Another way to determine whether or not you have the appropriate level of homeowner’s insurance coverage is by making a list of your belongings. Take not of approximately what it would cost to pay for each of these items out-of-pocket and create a total. Compare this figure to the current personal property value on your homeowner’s policy to determine whether or not you need to raise coverage.
Keep in mind that these three areas are just the beginning of the evaluation process. For more information about homeowner’s insurance or to receive a no-obligation quote, please contact us today.
Robert Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953. Oyer, Macoviak and Associates are vested members of the community who are committed to doing business face-to-face and being your insurance advocate in times of need.
