How Much Coverage Do I Need?
How much coverage is enough? “Insurance to Value” is the phrase the insurance industry uses to describe the amount of insurance needed to build a replacement of your home at today’s labor and material prices. Construction costs for labor and materials tend to fluctuate periodically.
Don Bates Insurance recommends insuring your home at 100 percent of replacement cost value. We can assist in calculating the replacement cost, by using construction cost data provided by recognized appraisal agencies, as well as the information you provide to us about your home’s features. Once a replacement cost is established, the value can be adjusted annually to keep up with inflation.
We encourage you to review your coverage and limits periodically, especially if changes, alterations or improvements have been made to your home. In addition, it is a good idea to make a list of your personal property items and update it periodically. Keep the list somewhere other than your home. Consider videotaping or photographing your personal property items, as well.
If you wish to review your current coverage, please give us a call. One of our licensed insurance advisors would be most pleased to assist you.
Personal Lines Department, Don Bates Insurance