As your local independent insurance agency, we take pride in keeping you in the loop about insurance. We want you to know what insurance is truly about and how to get the most out of your insurance policy. We’ll never miss a chance on telling you why a robust policy is the best. However, we’re aware that the most inclusive policy isn’t ideal for every single individual.
Is too much insurance necessarily a bad thing? No, of course not. However, if your homeowners insurance policy is breaking the bank, it can be. If your high-limits policy is over your budget, you could ask your independent insurance agent if it’s possible that your home is over-insured. You may be surprised to hear this, but being over-insured is possible under specific circumstances.
What does it mean to be over-insured? This means that the insurance policyholder has purchased coverage that greatly exceeds the value of the item being insured.
Don’t make this mistake: Often, people will mistakenly believe that the insurance policy should cover the real estate market value of your home. As the real estate market fluctuates, you could be at risk for being over-insured or under-insured. If a loss were to occur when the market was up, you may not have enough coverage for repair costs. This is because the real estate market value depends on your land as well.
Homeowners insurance is protection for the actual structure on the land, not the land itself. One of the most important things to know about purchasing home insurance is this: Insure your home with sufficient coverage based on the cost to entirely rebuild the structure in the event of a loss.
How to find out the cost to rebuild your home: Contact your local homebuilders association and ask what the average square-foot construction costs are for the specific area you live in. Then, multiply the square footage of your home by the cost per square foot. Base your insurance coverage on this number.
Most reputable insurance companies have a cost estimator calculator to assist with the process as well.
However, it’s important to keep in mind that construction costs will also fluctuate. For this reason, it’s essential to check your coverage at renewal to ensure it is sufficient. Also, if you renovate your home or add additions then you need to double-check your insurance policy limits.
Another way to save money on your policy is to check with your independent insurance agent to see if you are eligible for any discounts. For example, some insurance companies will give you a discount for having security devices in your home. Read more about home insurance discounts Here!
By: KayLynn P.
Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder
Search for a local agent with our agent finder map.
Read more about KayLynn's background.
Did you know that your rideshare work might not be completely insured? Before you get into an accident, this is what you need to know.
Umbrella coverage is perfectly named as it describes an added layer of liability coverage across your personal insurance policies. Learn more on our website.
Are you afraid of getting sued? If not, you probably should be. Luckily, you can protect yourself with umbrella insurance.
Home sharing has become an increasingly popular way to make extra money or meet expenses. Know the risks, however. Learn more about home sharing insurance.
Why is it called an insurance “premium” instead of cost or price? We don’t know either, but here are some common insurance terms everyone should know.
Food delivery service can be a good “side hustle” to make extra money. That is, as long as you are properly covered with auto insurance.
Life insurance offers an opportunity for you to leave a lasting legacy for your spouse, family or even a non-profit when you pass away.
If you are trying to save money on your auto insurance premiums, there are some ways to cut costs that may surprise you.
If you’ve ever thought “I don’t need life insurance. I’ll be dead anyway!” you are not alone. Read some of the excuses we’ve heard.
Like Homeowners, Renters too, can Sustain Losses