Is My Home Insured to Value? How to Check

When disaster strikes, the last thing you want to discover is that your home is underinsured. “Insured to value” means your homeowner’s insurance policy covers the full cost to rebuild your home at current construction prices. But many homeowners don’t realize their coverage may fall short. Diamond Insurance Agency is here to help individuals and families in the Boerne, Texas, area make sure their coverage is sufficient.

5 Steps for Making Sure Your Home is Properly Insured

When considering your coverage needs and securing a suitable policy, you should take the following steps:

1. Review your policy. Start by checking your current dwelling coverage limit. This is the amount your insurer would pay to rebuild your home, not its market value but the cost of materials and labor.
2. Get a replacement cost estimate. Ask your insurer for a replacement cost estimator or hire a professional appraiser. This estimate should reflect current local construction costs, including materials, labor and code upgrades.
3. Update for renovations. If you’ve remodeled your kitchen, added a room or made other upgrades, notify your insurer. These improvements increase your home’s rebuild cost.
4. Consider inflation protection. Some policies include inflation guards that automatically adjust your coverage to keep pace with rising costs.
5. Schedule regular reviews. Reassess your coverage every year or after significant changes to your home or local construction costs.

Why is This Important?

Being underinsured can leave you financially vulnerable. If your policy doesn’t cover the full rebuild cost, you may have to pay the difference out of pocket or settle for a smaller, less functional home. On the other hand, being adequately insured can instill robust financial security.

We’re Here to Help

Contact Diamond Insurance Agency today to learn more about home insurance and assess and address your coverage needs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.