You hope it never happens, but if your home was ever destroyed, you want to know that you're fully covered. Unfortunately, many people find out after the fact that they are underinsured. To avoid this happening to you, check out the following:
- Do you have full replacement value coverage if your home suffered a complete loss? Many policies gamble on your home being salvageable and only plan on a percentage of the replacement value. For peace of mind, you may want to consider guaranteed replacement value with no caps, so if there is some kind of disaster that drives prices of building materials up in your area, you’ll be covered.
- Do you have an inventory of your belongings? Insurers generally cover a home's contents up to between 50 percent and 75 percent of the home's value. Make a list of your home's contents for a more exact estimate of coverage needs. That also provides a written record that can come in handy if you need to file a claim.
- Do you need additional riders for valuables? Things like jewelry, antiques, collectibles, firearms, silver, furs and electronics have a high financial worth. A basic home insurance policy will cap the coverage on valuable items and you may need to purchase a rider for additional coverage.
- Do you live in a flood zone? Damage due to flood waters is not covered in a traditional homeowners insurance policy. Speak to your agent about purchasing flood insurance.
- Do you have loss of use coverage? If you are unable to live in your house while it is being repaired or rebuilt, you will need to live somewhere else. The cost of a hotel or apartment could be above and beyond your typical bills, so you may want to ensure you have coverage for this type of situation.
Many people pay their homeowners insurance without ever looking at the details. Check into these five things to make sure you're fully covered. Contact your independent insurance agent with any questions you have about your Nashville home insurance.