When you purchase home insurance for your Medford, NJ home, you expect to be adequately covered against any eventuality. However, this might not be the case where you are underinsured. The good news is that instead of finding that you are inadequately covered when it’s too late, Rock Insurance Agency Inc. is here to guide you on steps you can take to minimize the risk of being underinsured.
Properly value your home.
Best practice says that you are underinsured if your home insurance doesn’t cover at least 80% of your home and contents’ value. Being underinsured means paying for premiums that won’t cover your loss or damage when the unexpected strikes. But how can you mitigate the risk of underinsurance? Here are some tips:
- Keep stock of your assets: Gradual accumulation of assets without updating your home insurance plan can result in underinsurance. You can avert this pitfall by periodically conducting a room-to-room inventory count to determine assets that aren’t included in your insurance plan.
- Updating your home insurance after renovations: Are you faced with a dilemma to include or exclude a recent renovation in your home insurance plan? To answer this, ask yourself if you would comfortably repair the renovation out-of-pocket if a disaster were to strike. If the answer is no, then you need to update your home insurance plan with renovations like adding a room, upgrading the kitchen, and so forth.
- Consider local construction costs: Building costs increase every year. Inflation and new regulations to be complied with can lead to an increase in building materials costs. In light of this, you need to update your home insurance with these changes to ensure you get total compensation if your house was to be rebuilt today.
Consider how you use your house and who is in it?
Do you have a dog that can bite in your house? Do you throw parties leading to intoxicated guests? Figure out triggers that can lead to property damage or bodily injury to other people. This way, you can adjust your liability coverage upwards to cover you optimally.
Home insurance in New Jersey
Insufficient home insurance means you will have to incur out-of-pocket expenses when disaster strikes. If you would like to know if you have enough home insurance, please talk to Rock Insurance Agency Inc. for more information.