Helpful Homeowner Advice

Physician's Money Digest, March15 2004, Volume 11, Issue 5

Consider these additional tips for ensuring yourhome and possessions are adequately covered:

  • Take inventory of your main possessions andkeep any sales receipts, purchase contracts, andappraisals. Be sure to keep a record of the serial numbersof major appliances and electronic equipment.
  • If necessary, take out a personal propertyfloater or endorsement to ensure your valuables aresufficiently covered.
  • If you have a home office, make sure yourhomeowner's policy provides enough coverage. Youcan add an endorsement to increase coverage foroffice equipment and provide liability coverage.
  • When taking stock of your coverage, be surenot to confuse property value with replacementcosts. The price to rebuild a house could be more orless than its property value, depending on constructioncosts in the area.
  • Make sure that you are not insuring the valueof the land, which typically runs at about 25% of theaverage home price. The Independent InsuranceAgents and Brokers of America (IIABA) adviseshomeowners to check their tax assessments for thebreakdown of land and house values. However,you do need coverage for landscaping and debrisremoval costs.
  • Notify your insurance company when you renovate.According to the IIABA, about 25% of remodelingprojects increase the value of a home by morethan 25%.