Is It Time for an Insurance Check-up for Your Property?


Things change - maybe your property coverage needs to as well. If you’re carrying too much coverage on your current property, you’re overpaying, and who wants that? But if you’re carrying too little, you might be taking on quite a bit of risk. The year is coming to a close, so it’s a good time to review your homeowner’s policy with your insurance representative. Scheduling a quick checkup with your insurers is a great way to find out if your property is appropriately covered.


What Will Your Policy Actually Cover?

Most homeowners insurance covers the actual structure of the home, but do you know how much your policy will actually reimburse you if your property is destroyed? When it comes to making sure your home is properly insured, you’ll have to take a look at the finer details. Insurers typically classify their coverage into three separate terms.


Actual Cash Value

The actual cash value is the market value of your house, minus any depreciation that’s happened. Depreciation is the loss in value of your home over time caused by things like age, wear and tear, and decreasing land value. Due to this, a policy with ACV coverage won’t necessarily cover the complete cost of rebuilding your home.


Replacement Cost Value

The replacement cost value of your home is the actual cost it would take to rebuild your property with current prices of materials and labor. A policy that covers this typically has higher premiums, but will provide a greater amount of reimbursement if you need to rebuild your home, within limits.


Guaranteed Replacement Cost

The guaranteed replacement cost is similar to the replacement cost value, but this policy coverage guarantees the insurance company will pay a certain percentage over your insurance policy’s limit in order to rebuild your property. A guaranteed replacement cost policy works out well in cases where natural disasters cause the prices of labor and materials to skyrocket in your region. The guaranteed replacement cost is the most expensive option for homeowners.


Is Your Current Insurer Right for You?

Shopping around for the best rates if you need new insurance is essential, but it’s also important to not place so much significance on the monthly price of the insurance. A cheap monthly rate doesn’t always mean the best deal. It’s also important to research which providers have the best customer service and the highest scores for claims process satisfaction. While this may seem like a hassle today, researching your insurance policy could really pay off in the future. An insurance checkup for your property is a great way to remain proactive against potential issues and will offer you peace of mind as a homeowner.


Contact Us

Starting the process of a home insurance checkup is key in determining whether or not you’re overpaying or underinsured. In a worst-case scenario, you’ll be glad you took the step. Have questions? The team at Borders and Borders is happy to talk. Reach out to us today.



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