After every natural disaster, too many people are faced with a harsh reality. They not only find their property and home destroyed, but they also discover that they might not have enough insurance to rebuild or fix the damage.
Did you know that two out of every three homeowners are underinsured by an average of 18%? That’s according to a survey by insurance services firm MSB. What exactly does that mean? If someone owns a $500,000 home, and they were underinsured by 18% when a disaster occurs, then they would find themselves $90,000 short in insurance coverage. Being underinsured could also mean losing your house if you get sued. Don’t be a statistic. Don’t wait for disaster to strike. Give Morris & Templeton Insurance a call at 912.355.4549 to ensure that your home is properly covered.
Homeowners Insurance Coverage
When looking at your insurance policy, there are four important questions to ask yourself and your agent, in order to determine if you have adequate coverage. Do I have enough insurance to rebuild my home? Do I have enough insurance to replace everything inside my home? Am I covered for additional living expenses? Do I have enough to protect my assets?
First and foremost, you should review your homeowners insurance policy every year. Over time, construction costs continue to rise, and it’s good to always be sure you have insurance to support that. Some homeowners also find themselves purchasing just enough protection to satisfy their mortgage lender, which isn’t always enough. Others confuse the real estate value of their home with what it would cost to rebuild it.
Next, think about the contents inside your home. Generally speaking, most policies provide coverage for your personal possessions for 50 to 70 percent of the amount of insurance you have on the structure of your home. Take some time every year to take inventory of your personal items and ensure you have enough coverage. Your inventory report should detail everything you own and the estimated cost to replace each item if they are stolen or destroyed by a disaster.
Another important reminder is to make sure your insurance policy covers the extra costs of temporarily living, if you can’t live in your home due to disaster. For example, this could include hotels, restaurant meals, transportation, or rent to live somewhere else while your home is being rebuilt. It would not cover your mortgage, trips to the grocery store, or other regular living expenses. If your standard coverage doesn’t seem to be enough, you can usually increase it for an additional premium.
Finally, it’s always key to make sure you have enough liability protection. This covers you against lawsuits for injury or property damage you could cause to other people. It also pays for damage caused by pets. Liability insurance helps cover both the cost of defending you in court and for the damages a court rules you must pay (up to the limitations of your policy).
Being underinsured is a very common issue that many people aren’t aware exists until it’s too late. Take some time to assess your insurance coverage, or take the guesswork out of it and give Morris & Templeton Insurance a call to make sure you and your family are fully protected when the unexpected happens. Visit morristempleton.com for more information about Morris & Templeton Insurance and the services they provide.