Tuesday, January 29 2019
Do You Have Enough Coverage to Rebuild Your Home?
Imagine how devastating it would be to lose your home in a fire. Now imagine not being able to rebuild it completely because you didn’t have the correct amount of insurance.
Selecting the proper amount of coverage is the single most important decision you can make with your Homeowners policy. Without it, you may not have enough coverage to rebuild after a total loss. This is called “insurance to value.” Below are some explanations and tips to help you make the right choices for your needs — and remember, if you need help, we’re just a phone call away!
What is insurance to value?
Insurance to value is the relationship between the amount of coverage selected (typically listed as “Coverage A” or “Dwelling Coverage” on your policy declarations page) and the amount required to rebuild your home. Insuring your home for anything less than 100% insurance to value could mean you wouldn’t have enough coverage to replace your home in the event of a total loss.
Why is the cost to rebuild different from the market value?
A home’s market value reflects current economic conditions, taxes, school districts, the value of the land and location, and other factors unrelated to construction cost. The cost to rebuild your home is based only on the cost of materials and labor in your area. It is important that you insure your home based on its reconstruction cost, NOT its current market value.
Why is reconstruction more expensive than new construction?
New-home builders typically build many homes at once, and solicit bids from various sub-contractors to receive the best pricing. Their business model is based on economies of scale. For example, they may purchase 20 bathtubs at once, securing a lower unit cost. These economies of scale don’t exist when building a single home.
How can I make sure I have the correct amount of insurance?
For all of your home, auto, life and business insurance needs, please contact Providence Financial, Inc. at 605-INSURED (467-8733) or email@example.com.
Wednesday, January 16 2019
Hey, Homeowner! You Should Review Your Home Insurance Now
Did you know that one in 15 insured homes has a claim each year?
Yes, according to the Insurance Information Institute, it’s only a matter of time before it’s your turn to file a home insurance claim. Wind, hail, water damage, freezing, theft, fire and lightning are just a few of the common culprits. Now tack on the probability of a liability claim or lawsuit being filed against you or a family member, and the likelihood of your home insurance staying on the bench forever is slim.
Following is our handy checklist of to be sure your homeowners insurance policy adequately protects you. Review these with your family and your Trusted Choice® Independent Insurance Agent before you are the one with a claim.
Be ready at claim time!
Bad things can and will happen. Reviewing your home insurance policy today with your Trusted Choice® Independent Insurance Agent can help ensure you’ll be ready when it’s your turn.
Contact Providence Financial at 605-221-6001 for all of your home, auto, life and business insurance needs.