Real Estate Blogging

It is standard practice (and required by lenders) that buyers obtain a homeowners insurance policy when you purchase a home. But how many of us think to re-evaluate or update our policies years after we've closed escrow? Insurance companies are always looking for ways to reduce or limit what they are going to cover - but homeowners rarely pay attention or act upon these changes.

In a recent article by Liz Pulliam Weston, it is noted that "the typical homeowner was underinsured by 27%."

Some of the biggest reasons for homeowners being underinsured are the rising costs of construction, and expensive remodels that are not added to the policy. Remodeling is at an all time high - thanks to home improvement stores and television shows for the "do it yourself" projects. Significant remodels should be reported to your insurance company and added to your policy. Although and increase in coverage will also result in an increased premium, not adding additional coverage to cover your newly remodeled home could be a far more expensive mistake!

Something to think about...
When you are looking to increase your coverage with your current insurance carrier, take the time to also obtain quotes from a few other insurance carriers to compare prices. You may be comfortable with your current insurance company, but they may be sticking you with high premiums or caps on coverage that will not cover the actual replacement cost of your home. Your home is your greatest investment - make sure it is covered!