Are You Underinsured?

Are You Underinsured? Why It’s Time to Reevaluate Your Homeowners Insurance

Your home is likely one of your biggest investments, but is your homeowners insurance keeping up with its value? If your policy has remained unchanged for years, you may be underinsured—and that could leave you vulnerable in the event of a disaster.

Home Values Are Rising

Over the past few years, home values have appreciated significantly. If your coverage is based on outdated numbers, your policy may no longer reflect the true replacement cost of your home. This means that in the event of a fire, storm, or other covered disaster, your payout may not be enough to fully rebuild.

Construction Costs Have Skyrocketed

Beyond home appreciation, the cost of building materials and labor has surged. Lumber, steel, and other essential materials have seen major price increases, making home repairs and rebuilds much more expensive than they were just a few years ago. If your insurance policy doesn’t account for these rising costs, you may find yourself paying out of pocket for unexpected expenses.

Do You Have Enough Coverage?

Here are a few key questions to ask yourself:

• When was the last time you reviewed your policy? If it’s been more than a year, it’s time for an update.

• Does your coverage reflect current construction costs? If not, you may need to adjust your replacement cost coverage.

• Do you have coverage for additional structures, personal belongings, and liability? Your policy should protect more than just your home.

What You Can Do

• Talk to Your Insurance Agent: Schedule a policy review to ensure you have adequate coverage.

• Consider Inflation Protection: Some policies offer automatic adjustments for inflation.

• Upgrade Your Coverage: If your home has appreciated or undergone renovations, make sure your policy reflects its true value.

Don’t wait until disaster strikes to find out you’re underinsured. Take the time to review your policy now so you can have peace of mind knowing your home is fully protected.