Homeowners Insurance, Reconstruction Costs

                           Why Is My Insurance Coverage More Than
                             The Value Of  My Home?

Trowbridge Insurance Agency

Buying the right amount of Dwelling coverage falls on the individual homeowners responsibility. If you have less than replacement coverage on your home, and it were to burn to the ground, that money you thought you were saving, by buying less than adequate coverage, could prove incredibly expensive. You buy Homeowners insurance to protect yourself from a catastrophic loss, so its important that you buy adequate coverage to protect yourself from that.

How much do I need to rebuild my home?

Previously, Insurance Carriers offered "Guaranteed Replacement" cost. That is, whatever it cost to repair

your home to its former condition, your homeowners policy would provide the resources to do so. But, after the Oakland Hills fires in the early 90's, Carriers found that many homeowners coverage had not

kept up with current construction costs, and only had coverage of $100,000 when it required $300,000

to 400,000 to rebuild the homes lost in the fire. All the Carriers then changed their polices and now only offer what is called "Extended Replacement" coverage. The Homeowner is responsible for telling the carrier how much it will cost to replace their home, and the carrier then adds either a fixed dollar amount, or a simple percentage over and above the Dwelling amount to take care of any discrepancies in the

amount available to rebuild the property.

 www.trowbridgeins.com

To contact me call  650-FARMERS or

email me at virginia.ctrowbridge@farmersagency.com