Regardless of what caused the damage, you need to understand that it causes significant problems. Whether it is water damage or fire damage, such circumstances are messy in its own way. Aside from the actual problem, you need to think about your life insurance and how you can rearrange it around this event.
When you reconstruct your home, you need to hire experts to evaluate what needs to be fixed and rebuilt. You also need workers to remove the debris and contractors to do the reconstruction. You wouldn’t want to waste time shopping around for the best price – you’d want an emergency crew to come to the rescue!
The materials needed for reconstruction needs to be available immediately, and workers need to be hired – all of which needs to happen as soon as possible because you’d want to move back to your home quickly.
So, why does the insured value different from the building costs of your home?
There is a big difference between a construction cost (when you take time and build things on a scheduled timeline) and reconstruction after a covered event. When determining reconstruction cost or home value, the insurer knows that there is an urgent need to get the work done. There is definitely no time to shop around and find deals on everything. You also need people working ASAP to rebuild your home; thus, you can’t wait around for the guy who charges half the price to become available.
During a claim, you will appreciate how expedited services will be that you won’t encounter problems when you know you’ve insured your home properly.
What kind of coverage do you need on your home to ensure that you’re not underinsured?
If you want to make sure that your insurer covers the total cost of your claim, then you need coverage that will insure your home to value. That doesn’t mean the real estate value of your home, but the reconstruction value based on the appraisal.
What if you don’t agree with the home value on the appraisal report?
Most people would find it difficult to believe that home reconstruction value is high. Understanding how reconstruction costs are calculated by your insurer will help you negotiate better with your agent. If you think that your home is under- or over-insured, you might as well talk to your agent and make sure you have the exact coverage that you just need.
Home insurance claims are very messy. That is why it is important to have enough insurance for financial security in the future.
At the We Insure Agency we offer better ways to get home insurance. We can customize your policy according to your needs. Call us at (954) 431-9423 or visit us today. You may also get a free home insurance quote from us by clicking here.