How Much Home Insurance is Enough?


Good things to know:
• Will your insurance company stand behind agreed upon repairs after a claim? Some companies are willing to put this guarantee in writing.
• Does your policy include replacement cost coverage for contents (clothing, furniture, appliances, and other personal property inside your home)? If not, you can add it by endorsement. The cost is small, the protection valuable. Replacement Cost Coverage pays for losses to your possessions at the cost of brand new items. Without this option, a covered loss to your personal possessions would be depreciated by their age and condition, reducing the size of your claim settlement.
The cost to rebuild your home is its replacement value. This can be very different from the estimated market value or actual purchase price. In most cases, it costs more to rebuild the home you own than to buy a new one.
How much home insurance is right for you?
Based in the Texas Big Country, Carlin Insurance understands the home insurance needs of our customers. We’ll work with you to estimate the replacement cost for your home and to adjust your policy limits from time to time as needed.
Here are some steps you can take to reduce the danger of being seriously underinsured:
1. Call us at Carlin Insurance, 325.673.4592. If you have questions or concerns about the limits in your policy, ask us to show you how those amounts were calculated. This will also give you an opportunity to make us aware of any overlooked information.
2. Read your policy. Certain property, such as jewelry and higher valued items, and certain perils, such as flood, are better insured separately. Knowing what is covered and for how much will help you insure properly.
3. Review your coverages. At each annual renewal of your policy, you receive a new Policy Declarations page showing limits of coverage and optional coverages. Review this information. If you do any significant remodeling or add a family room, extra bedroom or bathroom, etc., tell us about these changes so your coverage limits can be adjusted to cover the improvement.
4. Consider carefully whether your policy provides all the protection you need. Does it provide coverage for extra costs resulting from building code changes? Does it automatically increase coverage limits annually to keep pace with inflation? Does it provide additional funds if the cost of rebuilding your home exceeds the policy limits?
At Carlin Insurance we want to make sure you are truly covered, and we take very seriously our duty to you, our customer and making sure this happens. Give us a call today for a review of your homeowner’s policy! 325.673.4592