If you wonder if your home might be underinsured, it probably is. Estimates are that up to two-thirds of American homes are either not insured or underinsured. Many homeowners are completely unaware of the risk and do not know how easy it is to do something about this problem.
To find out if you are underinsured you can simply call an agent at Stonewall Grace Insurance serving Buena Vista, VA, and the nearby communities. Have your agent conduct an insurance review. Help by collecting the data needed about the contents of your home and its measurements so that an accurate calculation can be made to determine the total replacement cost.
Why is replacement-cost insurance a good idea?
There are a few ways to value a home based on different accounting techniques.
There is the book value of the home, which is the purchase price less the depreciation that has been taken since buying it. Deducting depreciation makes the value of the home go down over time (for tax purposes) when the real value actually is probably going up.
There is the actual value that the home could sell for on the open market. Then, there is the replacement value. Replacement value, if calculated correctly at current prices, is always the higher valuation of these three methods.
Insuring a home for replacement value allows a person who lost their entire house to more easily get back to the same lifestyle and quality level of what was lost.
Adjusting for Inflation
To have adequate home insurance, it is important to adjust for inflation. This calculation takes into consideration the average percentage cost that prices go up.
Loss of Use
Loss of use is when your home is damaged so badly that it is not possible to live in it during the time when it is being repaired or rebuilt. This insurance is in addition to the amount needed to rebuild the home. It covers the expenses you have living somewhere else while the reconstruction is underway.
Work with your agent at Stonewall Grace Insurance in Buena Vista, VA. Call (866) 446-5056 to get a home insurance quote. Get home insurance for replacement value that is adjustable each year for inflation and has coverage for loss of use. When you do this, you will be in the group of one-third of all American homeowners that have their home adequately insured.