If you had a total loss of your home today, do you know if you have enough insurance to rebuild your home and replace its contents?


The key to adequate coverage is an accurate estimate of the cost to rebuild your home in case of a total loss. Most policyholders rely on their insurance agent to estimate their home’s replacement cost. This may not be beneficial for you, especially if their goal was to merely reduce your premium in an effort to gain your business. Make sure your policy has adequate replacement cost and not just actual cost coverage (the amount you paid for the home). Typically, actual cost coverage is cheaper.

The replacement cost typically provides for the following coverages: 10% of the replacement cost for other structures on your property (i.e., a shed), 20% for additional living expenses when you can’t live in your home (i.e., a hotel stay) and 50% to 70% for contents.  

Make sure you periodically take inventory (and keep a detailed list for your records) of your possessions to ensure that you have enough coverage. Have valuables such as jewelry and furs appraised and, if necessary, add a personal property endorsement or floater onto your policy to cover their loss for any reason. This is important because most policies only cover up to a certain amount on valuables.  

A typical homeowners policy provides $300,000 of liability coverage if you, your family members or pets cause property damage or bodily injury to others on your property or elsewhere. You can increase your policy’s coverage or add a separate umbrella policy.  

NOT COVERED: Most standard homeowners policies exclude losses due to floods. However, you can purchase flood insurance from your insurance agent. 

For questions about your current homeowners insurance, call Community Insurance Group at 770.969.0888.