Insurance Update

The following information comes to you courtesy of the St. Johns Insurance website:

How Much Insurance You Need
Basically, you need enough insurance to protect your house (not including the cost of your land) and possessions. Here are some key factors to keep in mind when determining how much insurance you need.

Insure your home for what it would cost to rebuild it, not your mortgage amount or market value. Your insurance agent can work with you to determine your home’s replacement value. One way for you to get a quick estimate is to multiply the total square footage of your home by local building costs per square foot. But keep in mind, things like type of construction, improvements, special custom features, etc., aren’t reflected in a generic cost-per-square-foot estimate. You can also have an independent appraisal done.

Don’t underestimate the value of your belongings. Generally, homeowners policies give you coverage for your belongings that is equal to anywhere from 25% to 75% of the amount of insurance you have on your home. To decide what’s right for you, do a video or written inventory of everything you own that includes what it would cost to replace it.This is not only helpful in determining what your belongings are worth; it’s invaluable if you have a claim. Consider insuring belongings on a replacement cost coverage basis. While it generally costs a little more, if you have a claim you’ll be reimbursed for what it costs to replace the item with no deduction for depreciation.

Make sure you have adequate liability insurance. If someone is injured on your property and you’re not properly insured, it could cost you hundreds of thousands of dollars. Basic homeowners policies give you $100,000 worth of liability insurance. Increasing liability coverage to $300,000 or $500,000 is generally worth the relatively small increase in cost.

Look for a policy that covers the cost of building-code compliance. If your home needs to be repaired or replaced, the cost of improvements needed to comply with currentbuilding codes may not be covered by a standard homeowners policy.