Are You Up to Date on Your Homeowners Insurance is something we should all be asking ourselves. There are some basics involved in keeping our homes correctly insured. The first and probably most important step is to get a record of everything in the home. This can be done the old fashioned way with a pad and pen or the tech way, with a video or digital camera. Either way get it on record. It is much easier to deal with the insurance company when you have a home inventory. Additional information can be found through any of the major insurance companies, check out consumer sites such as the Insurance Information Institute, it would be a good idea to check out their website. If at all possible include receipts for large ticket items. bE sure to include model numbers and manufacture information.
You may notice after completing this that you may not be adequitley insured. If you feel comfortable, take the inventory to your bank and secure it in your safe deposit box. It is also a good idea to revisit this inventory list on a regular basis.
The other area where we usually find out too late that we are underinsured is in the area of replacement. Basically what you are asking here is, if my house burned to the ground, will my policy supply the funds to rebuild it? This is something that you will need to sit down with your agent to discuss at some length. I would suggest doing a bit of homework on the difference between replacement cost and fair market value. These are not the same and assuming such could ruin your life. Consulting with a buliding contractor to get a realistic idea of building costs per square foot is also a good idea. So whether you are using Statefarm, Erie, or Allstate just to name a few, it is important to know you are correctly insured.
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