Even though you might have just purchased the house, you could have paid more or less than the repacement value. DTRIC suggests checking with a local builder or assessor to establish the most accurate value to replace your home. You don’t want to insure a home for less than it’s worth to replace nor do you want to pay higher premiums for an overvalued house. Don’t confuse your house’s market value with its replacement cost. Insurance covers the replacement value and not the market value.

Every policy has exclusions, and it’s important to fill in coverage gaps that can affect your unique needs. For example, flood, earthquake and back-up sewer damages aren’t typically covered in a standard policy. If you’re anticipating any of these issues, you may want to have additional coverage.

You also may want to consider adding extended replacement cost coverage for your home or an umbrella policy for liability coverage. These broader policies set a limit above the amount of coverage you receive from your typical homeowners policy.

Often, insurance companies will offer a discount on one policy if you also purchase additional policies, such as auto insurance. Bundling can potentially help you save money on your premium.

Filing a claim is an essential step to recovering from a loss. And there are many things you can do to create an easier and more effective claims process. First, keep good records. Document important conversations, save receipts and contracts, and keep a good inventory of your home’s contents.

If and when the time comes to report a claim, you’ll have the info ready to pass along. Be sure to file quickly and within the time limits of your insurance policy to ensure that your loss is covered.

Review your policies every year. Changes to your home can affect your premium.

Some additions to your home, such as a finished basement might require additional coverage, while other additions like a new roof or burglar alarm can reduce risk and potentially lower your premium.

The best way to determine your coverage needs is by speaking with an independent agent. Your agent will review your situation, house and location to make the best policy recommendation for you. Your agent can also explain the details of your policy and optional coverage you may want to add. Have a question? Contact one of our customer service representatives today!