Ways to Ensure Your Home is Valued Correctly

This article was contributed by Carlton Insurance Agency, an Allied Partner of River Landing’s Custom Home Program. Click here to learn more about Carlton Insurance.

According to a popular Insurance to Value Index review, 61% of U.S. homes are undervalued on their insurance policy by an average of 18%. This can happen when unique features of the home are not considered. Another possibility is that you recently added a bathroom but never updated coverage.

It’s important to make sure your agent knows specific information. An example of just one item specific would be concerning your air conditioning unit(s). Do you have central air, evaporative cooler or a whole-house fan or  maybe even none of these? Think about other features of your home as the small things really add up. Items to keep in mind: chimneys, garages, patios, porches and balconies. It’s also incredibly helpful for you to know correct size of the garages, patios, porches or garages. And since very few homes’ exterior walls are 100% brick veneer, be sure to account for any other materials used. Be able to provide approximate percentages of floor coverings as well, for example: 25% granite flooring, 35% hardwood floors & 40% Berber carpet.

Note that insurance to value is the amount of coverage listed under “Coverage A” on your policy declarations page,  often referred to as “Dwelling Coverage.”  Insurance to value is referring to the amount required to completely reconstruct your home in the unfortunate event of complete destruction. Once your homeowner’s insurance is purchased, let your agent know of any changes. Annual account reviews are a proactive approach to ensuring your home is valued correctly.

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