The time a person needs home insurance the most is after a major catastrophe. Some disasters cause so much damage to a home that it needs complete replacement. The agents at Henderson Insurance Agency recommend an annual review of home insurance to make sure there is adequate coverage that is equal to the replacement value of the home and its contents.
The reason an annual review is such a good idea is because the cost of new construction increases over time, there may have been changes in the home, such as a new room addition, and real estate values change.
When a family has lost everything in a major disaster that completely destroys the home, there is tremendous comfort in knowing that there is enough home insurance coverage in place to rebuild the home and replace the lost contents.
How to Determine Replacement Value
Here are the steps necessary to determine a reasonable amount for the replacement value of a home:
- Inventory of the Contents – Make a written inventory of the all the contents in a home that records as much information as is available such as the model number, serial number (useful for recovery of stolen items), purchase year, amount paid for the item, and take a clear photo of it. For groups of items such as clothing, take a photo and count items in categories, such as the number of pairs of shoes, dresses, shirts, suits, etc.
- Home Design – If architectural plans of the home are available, use them to get room measurements. If plans are not available, make a rough sketch of the home, (using graph paper is easier) that shows all the rooms, their use, their size, and their placement. Take photos and make a video walk-through of the entire home interior as well as the exterior.
- Special Features – Make a list of any special features, such as carved marble fireplaces, outdoor fire pits, swimming pools, saunas, garden fountains, fishponds, etc.
- Save Receipts – Whenever possible, for anything in the home, save receipts for the purchase.
Save all this information about the home and its contents in an off-site location, which is secure, fireproof storage that is not in the home. Professional replacement cost-analysis is available for a fee, for those who do not wish to do this work themselves.
Make a copy of the information and take this copy to the agents at Henderson Insurance Agency. They will help calculate the replacement cost based on their extensive knowledge of home construction costs and the total value of items in the home, adjusted to the present day.