Guest Post: Building Back Better - Are You Insured for the Right Amount?

Building Back Better: Are You Insuring Your Home for the Right Amount?

Everybody knows insuring your home against all manner of occurrences is essential for peace of mind and financial health. Whether you’re looking at accidental damage, forces of nature or fire hazards, being covered means keeping your home and money safe from the contingencies life can throw at you. With current market conditions, it is essential to understand reconstruction cost and carry adequate policy limits to fully restore your home in the event of a loss

What is reconstruction cost?

Reconstruction or replacement cost is the cost to hire a contractor to rebuild your home as it is, using the same types of materials as the original construction. This amount could be significantly greater than what you paid to purchase the home or its market value.

Does your home have any unique features?
What custom features might be difficult to replace? These could include granite counter tops, built-in cabinetry, or plate glass shower enclosures.

Other important questions to ask
Do I have an older home with features that are difficult to replicate?

Older homes often have features such as wider door frames, original hardwood floors and plaster walls.

Is my home part of the National Register of Historic Places or a historic society? Historic societies often regulate reconstruction.

Would it be difficult for builders to access my home for reconstruction?
Neighboring homes, landscape features or other aspects of your community may have changed since your home was built.

Review your coverage amount every few years as you update your home to meet your family’s changing needs. Additions or enhancements can add to your home’s value and increase the replacement cost. For more information, contact Stefan Petrella, VP Director of Marketing & Business Development at Starkweather & Shepley Insurance.