The answer to this question is the crux of how well your insurance
policy will protect you if your home and personal property are destroyed.
Dwelling Insurance
The value of your home for insurance purposes is the cost of labor and
materials to rebuild it exactly as it is today. Many individuals mistakenly
think this cost is the market value, tax value or the amount of their mortgage.
Unfortunately, this is not usually accurate.
Most homeowners policies also cover damage to other structures on your property,
such as a detached garage, tool shed, stable, barn or gazebo. These buildings are
generally covered for 10 percent of the amount of the dwelling coverage.
Contact your insurance company representative, who has current information
about building materials and average costs in your location. By discussing specific
features of your home with your insurer you can get a more accurate estimate of the
replacement cost of your home.
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Questions To Consider
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When determining the replacement cost of your home, consider the following.
- Have you made any significant improvements to your home,
such as adding a room or deck, remodeling a kitchen or finishing a basement?
- Has it been more than a year since you reviewed the
coverage on your home with your insurer?
- Have there been any unusual changes in construction costs or market
values in your location? Even if you have not made significant home improvements,
an adjustment might be necessary to keep up with construction costs.
- Do you own a home that is considered historic or unique? Even though it
is expensive, you may want to consider buying extra coverage that offers full
replacement value for historic or unique homes.
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Personal Property
The best way to determine the value of your possessions is to complete an inventory.
Use the
Personal Property Inventory For Homeowners work sheet as a guide.
Taking the time to list your possessions and determine their
value can help you with the following:
- Get a claim settled more quickly.
- Verify losses for your federal income tax return.
- Purchase the right amount of insurance.
- Identify high-value items that you may want to insure for more than your policy limits.
Consider photographing your possessions. Store a copy of the inventory,
receipts and photographs in a safe deposit box at your financial institution
or in another secure location away from your residence. You should also store
a hard copy of important online documents. Another option is to scan the information
to a disk and store it appropriately.
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Auto
Insurance
Auto
Insurance
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