Is Your Home Properly Covered for Any Disaster?

Is Your Home Properly Covered for Any Disaster?

Disasters are disasters because they are unpredictable and people are often unprepared to deal with the magnitude of them. It pays to know that your home is covered for whatever disaster strikes your home.

For many Americans, their home is their greatest asset and investment. That means that it is crucial to avoid being underinsured, lest you pay the damages out-of-pocket and possibly deplete your life savings and more. To protect your investment from disasters, you need to review and update your insurance regularly as to include major purchases, increased rebuilding costs, and various home improvements. Here a few questions you can ask yourself and your insurance agent to guarantee your home will be covered for any disaster.

  1. Do I have enough coverage to rebuild my home?
    Your policy must cover the cost of completely rebuilding your home at current construction costs. Unfortunately, there are some homeowners who can only cover the cost of their mortgage. If your home is completely destroyed, you need to be able to cover the entire process of rebuilding it, which is often more than the market value of your home.
  2. Do I have enough coverage for temporary living expenses?
    If your home is destroyed, where will you stay? Your homeowners insurance policy needs to cover the cost of additional living while your home is being rebuilt.
  3. Do I have enough coverage to replace all my assets?
    Your homeowners policy only provides coverage for your things for approximately 50 to 70 percent of the insurance you have for your home. That is, if your policy provides $100,000 in coverage, you will only be reimbursed $50,000 to $70,000, depending on the policy.

You may not be able to predict every disaster, but you can provide coverage for them. For all of your homeowners insurance needs in Dallas and surrounding areas in Texas, visit the professionals at North American Advantage Insurance Services.