Property values are not static, especially in these tumultuous economic times.  Your Crown Point, Chesterton, or Dyer home’s value can depreciate in a rough housing market just as it can appreciate during a boom, and your homeowner’s insurance policy needs to cover more than just the replacement cost of all structure(s) sitting on your lot or land.  Here are three additional reasons beyond the fluctuating cost of rebuilding the physical house that I hope motivate you to re-evaluate your current policy:

  1. Personal possessions.  Let’s just say it’s been five years since you’ve evaluated your policy.  Here’s a question:  Do you own more (and more expensive) possessions?  Your policy can cover a certain dollar limit of replacement value for any personal possessions lost, for example, in a fire.  Have you purchased a new wide-screen TV, or in-home exercise equipment, or a closet full of new suits purchased for your new job?  Better to be safe than sorry.  Check it out.
  2. Cost of living.  The value of your home may have taken a little hit over the last few years, but the cost of living sure hasn’t.  For most people it has gone up, and if your policy covers any portion of cost of living expenses while your replacement house is being built you’ll want to make sure you’re not underinsured and susceptible to further financial strife.
  3. Home improvements.  Do you have a new addition off the back of the house, or maybe you finally built that detached two car garage at the back of your country lot.  These additional improvements increase the total value of your property and your insurance property should reflect these additions.

The worst way to find out if you have enough homeowner’s insurance is after disaster strikes.  Take a minute or two and give your insurance agent a call or send them an email.  They will take the time to walk you through the process.  If nothing else you’ll sleep easier knowing you’re already covered.