Best Louisville Home Insurance
The news headlines about the increase in building costs have been plentiful over the last few weeks. This time last year building a deck on the back of a home was about two thirds less expensive than what it is today. As a result there have been phone calls into our best Louisville Home Insurance agency Dick Watts Insurance wondering how this might affect their home insurance. policy. So let’s take a look
How Does Building Cost Inflation Affect My Home Insurance – Best Louisville Home Insurance ?
The single most important thing that a Louisville Home Insurance policy doesit to make sure that you home is replaced in the event that it is destroyed whether by fire, tornado, or a truck running over it. Therefor the first thing a Louisville Insurance agent does when evaluating a home insurance policy for you is to determine the potential cost to rebuild your home in the event of a total loss. The process determines your dwelling value of the policy and is the money that would be available to you to rebuild your home if the unthinkable occurs to your family. This means that building costs do absolutely matter in Kentucky Home Insurance. Violent and large changes in the cost to rebuild mean that you could be holding bag to finish out a rebuild on your home if your dwelling value is not high enough to cover it
What happens in a rebuild if I run out of money on my dwelling value ?
In the current market conditions it is really difficult to know how high that building costs can actually go. Which is scary for an insurance agent and keeps us up at night. So what can we do? First things first. Your Louisville KY home insurance policy written with our office will have a provision known as Extended Replacement Cost. Extended replacement cost is typically a percentage of your dwelling value and is used to cover cost over runs that might occur in a rebuild situation as a result of a total loss of your home. That percentage normally ranges from 25-50 % of the total Coverage A structure coverage. Times like right now when costs are skyrocketing is exactly why this provision is included in your Louisville Home insurance policy.
Is there any action that Louisville Home owners need to take today?
It is always a great time to do a review of your current home insurance policy coverage to make sure that you have adequate and appropriate coverage. Over time, we make updates, add items and improve the conditions of our homes. When we do these things it can increase the amount of money that would be required to rebuild the home. As a result the dwelling value that was appropriate several years ago is likely not to be adequate today. When you also take into account the inflation in building costs that we have seen, it is highly encouraged to re evaluate if you have enough coverage in the dwelling value limit to rebuild your home. Relying solely on the extended replacement cost to cover the increase is not a reliable plan.
As a result having a review of your policy to make sure that you have enough coverage at the best price possible is what we recommend. As an Independent Insurance Agent Louisville Insurance from Dick Watts Insurance has the tools available to make sure your coverage meets your needs and shopping the entire home insurance market place means that you can do so at a competitive price point. Don’t get caught with inadequate home insurance and let us review your home insurance policy today.
Topics: home insurance, insurance for Kentucky, insurance for Louisville, building coverage, Home Insurance tips, independent insurance agency. Extended Replacement Cost Insurance