Do you have enough insurance on the dwelling?

• It is best to insure your home for its full replacement cost. Replacement cost is how much it takes to rebuild the house using materials of like kind and quality.
• Insuring your home below its replacement cost could result in a claim settlement far below the amount needed to make repairs.

Do you have enough personal property insurance?

• A home inventory will help you evaluate personal property insurance needs. This is a room-by-room list of belongings. Include make, model, serial number, purchase date and price whenever possible. Receipts, appraisals and photos are useful too.

Review the homeowners insurance policy.

• Check policy limits. Review coverages, exclusions and limitations outlined in the insurance contract. Look for gaps and be familiar with what is and is not covered.
• Structures are typically insured for all direct losses except those specifically excluded (earthquake, flood and more). These losses are settled on a replacement cost basis, which means depreciation is not a factor.
• Personal property losses, on the other hand, are insured for losses specifically identified in the policy (theft, fire, vandalism, etc.). Most policies have limitations capping claim settlements involving jewelry, high value items, business equipment and more. Depreciation affects personal property claims.

Ask a homeowners insurance agent about optional add-ons.

• Insurance companies offer numerous endorsements to address coverage gaps and provide protection for specific needs.
• Personal property replacement cost coverage, a personal property floater for high value items, sewer/sump pump back-up/overflow and dwelling extended replacement cost coverage are good ones to consider.