Homeowners Insurance, Palm Bay, Florida - How much coverage do I need? Part 2 of 2

One of the big questions people have when they call up and buy homeowner's insurance is, “hey how much coverage do i need?” because it’s a very confusing issue. One of the things, especially if you think about a guy that buys a house on the beach, he’s paying a million dollars. Well, the land was probably $800,000, and the house is $200,000. So, you don’t wanna insure the land and pay premium for the land because it’s not going anywhere. The second thing is, you really wanna make sure you have an accurate replacement value because if you're too low, and in the event of a loss, you're gonna be penalized. And second thing is, if you buy too much, you're gonna be paying more than you should, and you’re raising your hurricane deductible, and you're gonna pay a lot more out of pocket. So, it’s very important that you do get the right amount.

Absolutely, and it’s extremely important that you check the replacement cost of your home at least annually. Often, it’s important to do that more than annually, and here’s the reason why. Because according to the wall street journal, people in this country love to upgrade their homes. We spent $40-billion in this country upgrading our homes last year. And whether it be that you want to sell the home for more or whether it be because--

Your wife wants to remodel again!

That’s the kitchen that she had to have. Whatever the reason might be, you spend $40-billion upgrading your homes in 2007, that adds a significant cost to the replacement value to the home, because now, you’re replacing those mahogany doors. You’re not getting the fiberglass anymore. Ok? You’re getting back the house that you lost, and the only way to do that is by having adequate coverage at the time of the loss, and that’s why it’s extremely important you meet with your insurance agent, go through the estimation process with them at least once a year, if not more often.

Again, give your agent a call, review your policy, and if you’d like a second opinion, give us a call at the Insurance Center of Central Florida. Our number is below.

Insurance Center of Central Florida
http://www.TheInsuranceCenter.us/
1-888-363-4706