Homeowners Insurance

We bought our townhouse 4 years ago... it was like $230k then, and that's what our homeowners dwelling coverage is set at currently.... I was wondering if you periodically need to "up" your coverage to coincide with the current market?

I called my ins co (Ameriprise/Amex) and they said that they evaluate to make sure you're not underinsured, but I'd just like to hear what other people do.

Thanks!

 

We have State Farm, and they regularly update the replacement cost based (I believe) on the labor and materials cost in the area.

 

Read the fine print in replacement cost insurance, there is usually a cap in it so most are not true replacement cost. I have chubb which is truly replacement cost with no cap. Most people are shocked when they think they have enough coverage and don't as my neighbor found out and they would not have enough coverage if something happened. The cap was not high enough to rebuild their home. I would recommend having several builders give you a price on what it would cost to replace your home.

People that don't update their insurance to current prices will be in for a rude awakening if they someday need it. Personally I can't even imagine not doing so. Really check your policy about what your insurance company really thinks is replacement value and is it really enough. We had two homes burn in my neighborhood one is being rebuilt extremely slowly and the other has been sitting for over 6 months with absolutely nothing even beginning to be rebuilt and that is the second time it burnt down. I have no clue what the hold up is but my guess is the insurance company.

My agent is someone who I know and trust for over 20 years, and I think that trust is important also.

Lee

 

We use USAA - who also give us updated labor/replacement cost...in addition any capital improvements we have made in the amount of > $500 we send o USAA and our policy scales to reflect the improvements. But I agree w/ Lee read the fine print and always CYA