Tips for Reviewing Your Home Insurance Policy Limits

With ever-fluctuating home values in Georgia, are you confident your home insurance policy limits are enough to cover the cost of rebuilding your home, should the unexpected happen?

The cost of rebuilding your house may be higher than the price you paid for it or the price you could sell it for today. As a homeowner, you need to protect your investment. The following tips will help you ensure you have the coverage you need—eliminating worry and additional hassles.

Assessing Your Home Insurance Policy Limits

Understand Your Policy

Read your policy to determine what exactly it covers. Most cover replacement costs, or payment for the cost to repair or replace damaged property using similar materials. A homeowners policy also covers your home’s contents, but coverage will vary based on your policy. You’ll want to purchase additional insurance to cover jewelry collections, artwork, and memorabilia.

Review Your Policy Limits

Make sure that your home has sufficient coverage on an annual basis by contacting Atlanta Insurance to review your policy limits. Let us know if you’ve remodeled, made an addition, or purchased an expensive item for your home.

We also need to know if you’ve made a major lifestyle change—for example, if you’ve gotten married or taken in an elderly parent who owns expensive heirlooms. With these lifestyle changes may come new items that need to be accounted for in case of a loss.

Purchase Additional Coverage if Necessary

A typical homeowners policy protects against fire, lightning, wind storm, and many additional perils; check your policy for specifics. However, most homeowners policies don’t protect against damage caused by floods, hurricanes, or earthquakes.

If you live in an area prone to specific natural disasters, it’s a good idea to look into additional coverage available as a stand-alone policy.

Insure Home Renovations

When making a major change to your home, it’s important to talk to us about insuring those changes. Be sure to let us know the specifics to ensure you have adequate coverage. If you remodeled a bathroom, we want to know whether you installed a standard bathtub or a whirlpool tub or if your countertops are now marble—it all adds to the value of your home.

Understand Rebuilding Costs

As a general rule, rebuilding a home costs more than an identical home would cost as a new construction. That’s because rebuilding includes several additional factors—like demolition, debris removal, worksite access, and updated building codes—that can drive up the price of a rebuild. Don’t assume that the new construction cost of your home provides enough coverage.

Construction costs are on the rise, so your policy should reflect that. When reviewing your policy, consider the rising cost of materials, labor, and supplies, and set your limits accordingly.

Consult a contractor for an estimate on your home today.

Bottom Line

Don’t play the guessing game. Contact Atlanta Insurance for assistance on determining the value of your home. We can work together to create a policy that will protect your investment. We’re ready to help and are just a phone call away!

For the average cost of home insurance in Georgia, refer to our article for more details. Buying a home in Atlanta doesn’t have to be difficult, let us help.