As an NC homeowner, you know that one of the most important things you can do to protect your assets is to have adequate homeowner’s insurance. But did you know that the amount of coverage you need may have changed since you last purchased or renewed your policy?
The cost to build a home has been on the rise for several years. First it was due to supply chain, and cost of building materials. Then it was labor cost increases. Now, it’s due to inflation. In fact, the National Association of Home Builders estimates that the cost of building a new home has increased by more than 20% since 2017.
This means that if your home were to be destroyed in a hurricane, fire, flood, or other disaster, rebuilding the exact same house today will end up costing much more than it did just a few years ago. And the frequency and severity of natural disasters have been increasing in recent years.
That’s why it’s more important than ever for homeowners to make sure their homeowner insurance policy has enough dwelling replacement coverage to protect themselves in the event of a covered loss. If your home is not insured for its current value, you could be underinsured in the event of a loss.
What Is Home Replacement Cost?
Home replacement cost is the amount it would cost to rebuild your home from the ground up, using the same materials and construction methods that were used to build it originally.
You can get an estimate of your replacement cost from a home builder, or you could use an online calculator. The easiest way for North Carolina residents to get this information is to call one of the agents at Superior Insurance. Or if you’re in the Raleigh or Durham areas, just stop in and speak to one of our agents in person. They will give you an estimated replacement cost and review your current homeowner insurance policy to see if you have enough coverage. They can even shop around for the best policy for your peace of mind as well as your budget.
Increasing Your Homeowner’s Insurance Coverage
If your research shows that you’re not insured for the current value of your home, increasing your coverage may mean paying higher insurance premiums. But imagine going through the trauma of a disaster like a hurricane or tornado only to find out your homeowner policy doesn’t fully cover your losses. By increasing your dwelling replacement coverage, you can protect yourself from financial hardship in the event of a covered loss. Remember – it’s more expensive to rebuild homes than it was just a few years ago, so make sure you have enough coverage to protect yourself.
Superior Insurance can help you review your insurance policy and make sure you have adequate coverage for your dwelling and your possessions. We can also help you understand the different types of coverage available and choose the right coverage for your needs.
