Why You Should Review Your Replacement Cost Coverage
This summer has brought good news for Americans. Unemployment is declining , low interest rates and 3 percent down payment programs are making housing affordable. This is transforming the lives of many Americans, who are now finding their mortgage payments are finally more comfortable and are also discovering they have a little money left over to improve their homes. If you are one of the many homeowners who are taking advantage of the improving economic situation to renovate your home, it is in your best interest to talk to your insurance agent about how your improvements will increase your property value.
Specifically, take the time to evaluate your replacement cost coverage, or the amount of payout your policy will offer in order to rebuild your home, after a home improvement.
Remember, it costs more to rebuild a home than it does to build it in the first place because debris removal and rising costs of housing materials need to be factored in.
That means that you cannot simply match the replacement cost coverage in your policy dollar for dollar with the cost of your home improvement. Fortunately, your insurance agent will be able to evaluate your renovation, the cost of any high-end materials you use, debris removal factors, and current rates of inflation to tailor your policy so it will offer you sufficient coverage to protect your whole house, including your improvement.
Whether you live in Bristol, Farmington, Plainville, or elsewhere in Connecticut, you deserve to have a homeowners insurance policy that will protect the hard work you put into improving your home. To work with an expert agent who can help you update your policy, contact North American Underwriters. Our team is dedicated to helping you keep your coverage up-to-date so you can rest easy knowing you are protected. Don’t renew until you call NAU!
