When Your Homeowner Insurance Is Not Enough

When Your Homeowners Insurance Isn’t
Enough

Consider
this startling fact: in 2007, 66 percent of U.S. homeowners were under insured by an average of 18 percent. This means that if these residences were completely
obliterated, just look at the news on tornado s’ or wild fires to see the startling truth, the homeowners would not have enough insurance to replace their
loss. 

It is
important that your home is “Insured to value.” This means that you have
sufficient insurance coverage to cover the full value of your home so that if
you have a loss, you can rebuild an identical home, using the same building
materials. This is known as “replacement cost.” Money may not be able to
replace the full value of sentimental objects, but it does help.Call us today to increase coverage on your  Connecticut Homeowners Insurance. Make sure you have insurance on both your primary home and secondary home ( secondary homeowners insurance.).

For example,
have you recently:

• ·        
  Added
  square footage to your home?
• ·        
  Built
  a garage, porch or other attached structure, or enclosed porch?
• ·        
  Upgraded
  your kitchen counter or cabinets?
• ·        
  Remodeled
  a room in your home?
• ·        
  Or
  done anything to increase the value of your home?

If you
answered “Yes” to any of these questions, it is important that you let your
independent insurance agent, us, know as soon as possible. This will enable
your agent to increase coverage to make sure you are “insured to value.”

Periodically,
your insurance company may need to increase you homeowner insurance for a
number of reasons. Escalating construction costs and oil prices would increase
the cost of rebuilding your home to its original state.

You may
wonder why in our current market downturn, in which home prices are declining,
you would need additional insurance. As previously noted, insurance to rebuild
your home is based on reconstruction costs, not current home values or new construction costs; the cost of building materials and labor is increasing.

It is a good
practice to contact your independent agent, us, at least once a year-regardless of
when you obtained your policy-to discuss any improvements you have made to your
home or those in the planning stages. Being prepared is essential to being
protected.