Paying More, Covered Enough?

Your homeowners insurance renewal arrives, and the price is higher. You may wonder why you are paying more when you have not filed a claim.

But another question deserves attention: If something happened to your home, would your coverage be enough?

Higher premiums do not automatically mean better protection. Before you focus only on the price, take a few minutes to review what your policy would pay and what you would owe.

Could Your Coverage Rebuild Your Home?

Your home’s market value and its rebuilding cost are different. Market value includes factors such as location and land. Rebuilding costs reflect the labor and materials needed to replace the structure.

A kitchen remodel, room addition, or other improvement may change how much coverage you need. Check in with your agent to see whether your current dwelling limit reflects your home as it is today.

How Would Your Roof Claim Be Paid?

Roof coverage can make a big difference after a covered storm. Depending on your policy, payment may be based on replacement cost or actual cash value.

Actual cash value generally subtracts depreciation for age and wear. That could leave you paying more toward a new roof than you expected. Replacement cost coverage may also have conditions you must meet to receive the full payment.

Ask your agent whether your roof coverage changed at renewal and whether a separate wind or hail deductible applies.

Could You Afford Your Deductible?

A higher deductible may lower your premium, but it also increases your share of a covered loss.

This October, give your policy the same attention you give your bill. A brief review with your insurance agent can help you understand your protection, compare options, and make choices that fit your budget.