7 out of 10 people will get this Home Insurance question WRONG
Can you guess how much it would cost a year to Insure this home with over $1 million in total coverage?
Any investment requires oversight and review to make sure you have proper protection, without over paying. Home Insurance is no different, but that doesn't necessarily require reviewing the policy every year.
Having a trusted insurance advisor is key.
We typically recommend every couple years, since most insurance companies will make rate increases or decreases during that time period.
You can also use a home insurance calculator for an estimated premium.
Back to the quiz question:
You might be surprised to learn the answer is A. $1805 is the premium we were able to find with a top rated home insurance company. What we could we do for your home and auto insurance premiums. Remember, lower home insurance premium also means lower mortgage payments if you escrow your house payment.
What’s likely the Largest investment you own?
Chances are it’s your Home…Right.
So, why are nearly 2/3 or 59% of all homeowners under-insured according to Marshall & Swift/Boeckh LLC (MSB), a leading provider of building replacement cost data, on their most significant investment?
Not because you don’t care, it’s because you don’t know any better.
That’s why we wrote this article to help you with getting the right homeowner's insurance coverage.
If you’ve been with the same home insurance company for 10, 15, 20 or more years there’s a high probability you are way under-insured and most likely paying too much for too little coverage.
One gentleman we spoke with was paying over $4,700/yr. for a 1900 sq. ft. home and had not paid attention to the premium for the past 20 years. Now that he's getting close to retirement he asked a few neighbors what they were paying. What he found was most everyone was paying around $1400 to $1500 a year for a similar home, and he was not pleased.
Just in the past few years home construction cost have jumped due to supply and demand for material, plus a tight labor market forces higher wages for construction companies.
Your $250,000 dwelling limit sounded like enough coverage when you bought your home for $225,000. The problem is if you are faced with a significant loss it could easily cost significantly more.
A typical Homeowner shortfall in coverage is at risk to pay an additional $30,000 to $50,000 out of pocket, or more, towards the actual cost to rebuild their home that their current home insurance policy does not cover.
One of the most common reason is not notifying their insurance agent or broker after remodeling or renovating the property.
Here are just a few things to take into consideration when rebuilding a home.
- Demolition cost of the old house
- Permits and new construction plans
- New foundation if a total loss
- Single home construction cost vs. multiple home subdivision pricing is higher
- General contractors profit margin
This also doesn’t take into consideration content coverage for your personal belongings.
Is it time to review your coverage's and what you are paying for home insurance premiums?
Get some peace of mind and maybe save some money in the process.
Don't Forget About Renters Insurance
Just because you are renting doesn't mean you don't need protection for your personal property, in case of theft in or out of your rental property.
If there was a fire in the building where would you live? It's not the responsibility of the landlord to provide alternative living quarters if your forced to move due to fire or even a flood from a neighbors toilet overflowing.
Also, what happens if you're the cause of damage to the property from a claim like a kitchen fire or tub that overflows. You could be looking at a lawsuit equaling thousands of dollars, plus lost revenue for the landlord.
In most cases for less than 50 cents a day you can have the peace of mind you personal property is protected with full value replacement cost coverage and liability in the event the property is damaged due to a covered loss.
Plus renters insurance would pay for another place to live while the rental property is being repaired.