Fire.
Total loss.
Flood.
Earthquake.
Your home.
Probably not words you want to hear in the same sentence referring to your home.
Like most, your house is probably your biggest investment.
And, like most homeowners, you take pride in improving your home as well as maintaining it.
But, have you ever stopped and took the time to think about the upkeep of your homeowners insurance? Making sure the coverage matches the ever rising cost of building or rebuilding it.
When a new homeowners policy is purchased things like granite counter tops and hardwood floors are not disclosed.
Then as years go by improvements are made like new flooring, upgrading existing electrical or plumbing.
These improvements and others like adding a deck or patio can increase the value of your home.
Take a look at average increases:
Not to mention you want to keep these things properly documented, in your records and your homeowners insurance.
You don't want to end up with insufficient coverage and out in the cold.
Keep in mind rebuilding is more expensive than an actual new build.
Some of the reasons for this are: Contractors have to be skilled in restoration Rebuilding homes differs from home to home i.
e.
time and costs Debris (more than normal) will need to be removed Current day code may need to be met for older homes Any or all of these factors can add a great deal to the rebuilding of a home.
It has been estimated the average homeowner is underinsured by as much as twenty seven percent.
It is easy to make sure this isn't the story you tell.
Make sure all your homes features & upgrades are inventoried properly and adequately, especially as far as cost goes.
Don't go overboard though.
Just because you paid $750,000.
00 for a home doesn't mean it costs $750,000.
00 to rebuild.
Also remember land value is part of your purchase price not part of your rebuild cost.
Hopefully this advice will help you be prepared.
No one wants to lose a home, but it can happen.
Isn't it nice to know you properly prepared?
Total loss.
Flood.
Earthquake.
Your home.
Probably not words you want to hear in the same sentence referring to your home.
Like most, your house is probably your biggest investment.
And, like most homeowners, you take pride in improving your home as well as maintaining it.
But, have you ever stopped and took the time to think about the upkeep of your homeowners insurance? Making sure the coverage matches the ever rising cost of building or rebuilding it.
When a new homeowners policy is purchased things like granite counter tops and hardwood floors are not disclosed.
Then as years go by improvements are made like new flooring, upgrading existing electrical or plumbing.
These improvements and others like adding a deck or patio can increase the value of your home.
Take a look at average increases:
- Kitchen Renovation = $18,000.
00 - Finishing a Basement = $22,000.
00 - Adding a Bathroom = $8,000.
00 - Renovating a Bathroom = $5,000.
00 - Adding French Doors = $6,500.
00
Not to mention you want to keep these things properly documented, in your records and your homeowners insurance.
You don't want to end up with insufficient coverage and out in the cold.
Keep in mind rebuilding is more expensive than an actual new build.
Some of the reasons for this are: Contractors have to be skilled in restoration Rebuilding homes differs from home to home i.
e.
time and costs Debris (more than normal) will need to be removed Current day code may need to be met for older homes Any or all of these factors can add a great deal to the rebuilding of a home.
It has been estimated the average homeowner is underinsured by as much as twenty seven percent.
It is easy to make sure this isn't the story you tell.
Make sure all your homes features & upgrades are inventoried properly and adequately, especially as far as cost goes.
Don't go overboard though.
Just because you paid $750,000.
00 for a home doesn't mean it costs $750,000.
00 to rebuild.
Also remember land value is part of your purchase price not part of your rebuild cost.
Hopefully this advice will help you be prepared.
No one wants to lose a home, but it can happen.
Isn't it nice to know you properly prepared?
Source...