Be sure the amount of insurance covers total reconstruction costs
One of the important issues you'll face as a homeowner is determining the right amount of home insurance coverage you need. There's a tendency for most of us to equate this amount to the market value of the home. However, that number can fluctuate depending on land value, interest rate trends and surrounding home values – factors that have little to no impact on the reconstruction costs necessary to rebuild the structure if needed.
You should, therefore, insure your home for 100 percent of the estimated reconstruction costs, so you and your family can get back on your feet without worrying about out-of-pocket expenses.
Reconstruction costs depend on the time-adjusted price of labor and materials, the condition of the area after an incident, your home's location, in-place landscaping, utility lines and other factors. It's important to review your home coverage needs over time to refine the estimated reconstruction costs and possibly adjust your home coverage policy accordingly.
Other factors that influence the value of your home and its reconstruction costs include:
- The type and quality of construction
- Renovations you may make as an owner
- The number of bedrooms and bathrooms
- Multiple levels and rooflines
- Attached garage(s)
There's a lot to consider, but Amica representatives can help you determine the right coverage and the right options needed to make sure your home is protected. Give us a call – you may even be eligible for certain discounts.1
Know what your condo association insurance doesn’t cover
While your condo association most likely carries insurance for buildings and other association-owned property, it won't cover your personal property, such as furniture, electronics, appliances, jewelry, clothing and much more. In many cases, you may also need to obtain your own coverage – condo insurance – for wallpaper, carpeting, fixtures and any other items not covered by the association insurance.
Condo association insurance also doesn’t protect you from liability claims that can be lodged against you as a result of damage you may have inadvertently caused to the surrounding structure or your neighbors’ property. In these cases, you may be required to pay considerably more than what your property is worth – in the end, putting your financial future in jeopardy. The right condo insurance policy will provide this protection.
Be sure you know exactly what your condo association's insurance policy covers and be prepared to supplement this with a separate condo insurance policy that covers your personal property and valuables, and protects you and your future against liability claims. Amica offers condo insurance that can be customized to protect you against liability and insure your condo investment and contents.
We make the process of switching from your current policy to Amica easy by handling all the details. Call us anytime.
One quiz. Many reasons to take it.
When it comes to covering your home and valuables, and protecting yourself from potential liability claims, what you don’t know can hurt you. Take this quiz to see if you’re prepared for the unexpected.