Visio Talk

Homeowners that have had the same home insurance company and policy for years should do a check up to ensure they still have adequate coverage. A lot can happen during the lifetime over which you own your home. What was adequate when you first purchased your home might not be sufficient any longer.

If you’ve done a lot of home improvements recently you might need to raise your home coverage. You have to think about how much it would cost to rebuild your home to its present status, not how much it would have cost to do so 30 years ago. Another thing to consider is your deductibles and depreciation reductions.

For example, imagine your policy features a 10 percent depreciation deduction. You just put a new roof on your house when a month later, a tree falls on it. You will be angry if the insurance company knocks off 10 percent of your reimbursement for depreciation, whereas before you put the new roof on depreciation was reasonable.

Some people buy the bare minimum house insurance they can in order to keep costs down. This is understandable if you just bought a home and your budget is tight, but don’t forget to raise your coverage as your financial situation improves.

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