The 5 Most Common Home Insurance Coverage Shortfalls

I read a statistic today. Nearly 60-percent of homeowners in the U.S. are under insured according to a recent study. Look at your two closest neighbors – only one of you are fully insured, and two of you are at risk of financial disaster. As Fall comes to end, it’s a good idea to check your coverage and make sure you’re fully covered.

Being “under insured” is defined as any property with only enough insurance coverage to replace up to 78-percent of the replacement costs. It’s important to know the most common homeowner insurance coverage shortcomings and make sure that you’re out of the risk group.

Did you update your home value after that remodel?

Remodels can give you a quick boost in property value and curve appeal – kitchen renovations or floor updates are easy ways to woo prospective buyers and move a house off the market, but did you cover that added value? Also, certain improvements might trigger new insurance coverage. Call your agent and check to see if you need to upgrade or perhaps add umbrella insurance.

Do you live near a canal or stream? Consider flood insurance.

Besides our County’s namesake river, the Deschutes, we have many canals or streams running through our neighborhoods.  You would be surprised how much volume of water flows through even the smallest stream. If you live near and downhill of one, take heed.

More times than not, flooding is not covered under most typical homeowner policies. You would be surprised how inexpensive additional coverage may cost.

Is inflation leaving your insurance coverage short?

According to AccuQuote, replacement costs have raised roughly 7-percent per year over the last 13 years. Think about that. If your home was built even 5 years ago, then your insurance coverage has been reduced by 2/3 by construction costs alone.

How old is your home? Construction standards change over time.

Central Oregon has a beautiful history, and if you live near Downtown Bend, you might live in some of it. That beautiful house on the Westside of Bend may be many decades old and the construction standards and building codes have changed many times since. If you end up with fire or water damage, that area may need to be rebuilt up to newer codes, which can get expensive.

Are you only covering your mortgage?

After the recession, most Americans learned the realization that home values and mortgages are not always the same. In a perfect world, we owe less than the actual value, but if you owe less than the value, make sure your insurance coverage covers the cost to rebuild and not just your mortgage.

Don’t guess on your coverage. Get the right answers.

If you’re a homeowner in Central Oregon, check with your insurance agent to ensure that you have the appropriate insurance coverage. If you’re shopping around for a home here in Central Oregon, consult with a qualified agent to see how much the appropriate policy might costs. Kiplinger has a great article with great things to think about when upgrading your home insurance policy.

If you’re interested in learning more about our services for insurance professionals, check out resources for insurance professionals. If you have any questions about fire damage, contact our team to learn more, and check out our fire restoration page to learn more about our services.

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