How to Determine Replacement Value of a Home

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:

  1. Inventory of the ContentsMake 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.
  2. 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.
  3. Special Features – Make a list of any special features, such as carved marble fireplaces, outdoor fire pits, swimming pools, saunas, garden fountains, fishponds, etc.
  4. 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.

Understanding Commercial Insurance

Commercial, or business, insurance is a form of security that is available to protect you in the event of a loss. Whether you are a small business or a large corporation, you should have some form of commercial insurance. There are several different subsets of commercial insurance available for your business needs. In general, businesses can opt to have liability and property insurance.

General Liability Insurance

You will need general liability insurance to protect your business from a loss if someone is injured. If an individual has an accident and is hurt while dining at your restaurant or shopping in your store, you may have to pay out-of-pocket medical costs if you’re not covered.

You can always purchase additional coverage for complete safety. It’s a good idea to have worker’s compensation along with your liability insurance. If an employee were injured, the cost of medical treatments and out-of-work expenses would be costly without insurance. Many states require employers to have a worker’s compensation supplemental to general liability. 

Commercial Property Insurance

While general liability insurance protects you if a person is injured while at your place of business, commercial property insurance protects your building and its contents. Depending on your coverage, you may be reimbursed if there is a fire, storm, burglary, or other unforeseen disasters. Check with the Henderson Insurance Agency and speak with one of their independent agents to discuss what items will be protected under your policy.

Serving the Harrisburg, PA area, the Henderson Insurance Agency can offer reasonable quotes on a new policy. If you already have insurance, the independent agents can review your policy to keep it up-to-date with your current situation.