Building Back Better : Are You Insuring Your Home for the Right Amount ?
Evaluate your property to see which policy may be best for you . EDITED BY KERRI TALLMAN
When it comes to homeownership , there are a number of essential elements that everyone has to take into consideration . For example , there is the matter of routine maintenance . Updating a boiler or repainting a room aren ’ t just a matter of aesthetics . In many cases , they are about keeping you , your family and , indeed , the investment you ’ ve made in your house protected . Then , there are updates that can save you money and improve the environment . Going green with solar panels is one way to achieve this . Even just weatherizing your windows and doors can make a huge difference in energy usage . And , of course , there is insurance . It can be a little daunting at times , but you know you need it . In fact , banks won ’ t issue you a mortgage without it .
Everybody knows insuring your home against all manner of occurrences is essential for peace of mind and financial health . Whether you ’ re looking at accidental damage , forces of nature or fire hazards , being covered means keeping your home and money safe from the contingencies life can throw at you . With current market conditions , it is essential to understand reconstruction cost and carry adequate policy limits to fully restore your home in the event of a loss .
WHAT IS RECONSTRUCTION COST ? Reconstruction or replacement cost is the cost to hire a contractor to rebuild your home as it is , using the same types of materials as the original construction . This amount could be significantly greater than what you paid to purchase the home or its market value .
DOES YOUR HOME HAVE ANY UNIQUE FEATURES ? What custom features might be difficult to replace ? These could include granite countertops , built-in cabinetry , or plate glass shower enclosures that may be purchased at a specialty store or installed by a special contractor .
DO I HAVE AN OLDER HOME WITH FEATURES THAT ARE DIFFICULT TO REPLICATE ? Older homes often have features such as wider door frames , original hardwood floors and plaster walls that may be difficult to purchase or may require customized building .
PHOTOGRAPHY : GETTY IMAGES .