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Could you afford to rebuild?
Most homebuyers spend countless hours looking for the right home, making sure all the proper
paperwork has been submitted to the right people and then finally get those keys! Woohoo! And then
after closing all that documentation is stored somewhere and most don’t pay attention to the makeup
of their monthly mortgage payment unless it increases. This is especially true if the payment is made
electronically. Most homeowners do take notice when their monthly payment increases, and one major
part of your mortgage payment is the homeowner’s insurance premium.
Every year around the month you purchased your home you probably receive a letter from your
insurance company showing what the current insurance coverage is on your home and reminds you to
contact them if you need to make any changes before the new policy AND premium go into effect. If
you make no changes a new bill is sent either to you or to the mortgage company. Over the last year or
two most homeowners have seen increases in their policy rates when the notices of renewal arrive even
though nothing has changed with coverage and no claims have been filed.
One of the main reasons you are seeing premium increases is directly related to the increase in cost of
labor and building materials. Supply chains are tight making building materials harder to source and
more expensive and the labor shortage isn’t helping either. You have experienced this firsthand if you
have done any home improvement projects during the last year or two. A premium increase is the
insurance company’s way of dealing with rising costs if something happens to your home and you need
to make a claim.
Now is the time to take a closer look at your policy provisions and be certain you have the coverage you
need especially if you have you made upgrades to your home since you purchased it. Did you put in a
new bathroom or upgrade the kitchen? If changes have been significant then you should discuss with
your agent to ensure proper coverage. After all, you probably don’t keep the same insurance coverage
on an old car as you would a brand new one! Keep in mind the many moving parts of a homeowner’s
policy and review it at least yearly to be sure you have the coverage you need. No one wants to think
about losing their home and possessions, but could you afford to rebuild it and replace everything you
own at today’s cost if you suffered a loss?
The same policy review could also save you money! Can your deductible be raised? Are you paying for
coverage you no longer need for example like coverage added for a trampoline you no longer own now
that the kids are out of the house? Did you get a new roof or upgrade a security system? Most
companies also offer discounts if you have multiple policy types with them or if you have newer systems
Take some time now to review coverage with your agent to protect one of your largest investments!
..... "You've Got A Friend in Real Estate"
Jarod Tanksley 615.403.8265
Brentview Realty 615.373.2814