One of the biggest problems that emerged from the Marshall Fires is that many homeowners, tenants and HOA's were underinsured. With the dramatic rise in real estate values, the increased cost to replace the personal property inside your home and skyrocketing construction costs, it is extremely important to review your insurance policies and maintain the right insurance coverage. Talk to Your Broker to Review and Update Your Policies Contact your insurance broker (especially if you haven't updated your policy in a while) to review the current coverage on your property. Things to ask your broker:
Single Family Homes
What are you currently insured for per square foot for replacement cost?
What is the current actual cost per square foot to replace a home like yours? Depending on your property, you probably want to be insured in the $300 to $500 per square foot range. Many policies that were first issued years ago still are at $150 per square foot which is simply not enough today.
Do you have enough liability insurance?
What is your current personal property/contents insurance coverage? Is it enough? Take updated photos and videos of your belongings. Make sure to store these images in a separate location other than your home (like on a cloud based storage folder).
Ask your insurance broker what endorsements your policy should include - i.e. Drain and Sewer Line Backup, Ordinance and Law, etc.
Condos/Townhomes
HOA Coverage vs Personal Policy
What does the HOA insurance cover? What does your homeowner's policy need to cover?
What is the current actual cost per square foot for replacement for your condo or townhome? Does your HOA have enough building coverage?
Do you have enough personal property coverage for your contents?
Loss Assessment Coverage
Do you have loss assessment coverage?
Does my policy cover for special assessments resulting from my HOA's wind/hail deductible?
Investment Properties
Do you have enough coverage for current replacement costs?
Do you have enough liability insurance?
Make sure your tenants have renter's insurance for their contents, as well as liability coverage for them & their pets + Drain & Sewer Line Backup coverage.
It can feel like a daunting task to review your insurance coverage, but your insurance broker can help you through it and it is well worth the effort. If you have any questions or need my assistance- I'm happy to chat.
Best, Rich