By Martin Johnson III | June 22, 2019

Renewal home insurance replacement cost change?


Marty Johnson: Hello, Marty Johnson, JMW Insurance Solutions. Happy Friday. Hope you’re having a great day. Just want to touch bases with you in regards to some homeowners insurance coverage issues. If you had your home for, let’s say, 10 years, and you haven’t sat down with your insurance agent and talked about your coverages, you haven’t adjusted your coverages, that kind of thing … Hate to tell you this, but you might be under-insured, and there’s a lot of factors that go along with the home insurance policy that if you don’t have at least 80% of replacement cost value on your home insurance policy, a lot of the coverages go away, and we never want to see that happen. The insurance agent doesn’t want to see it happen, the insurance carrier doesn’t want to see that happen, but everybody has to follow the rules in the insurance world with the Department of Insurance and all that good stuff.
Here’s the reality of it: Every now and then, every year, every other year, sit down with your insurance agent, go over the insurance coverage, and make sure that your home is protected. Talk to a general contractor and find out what it would cost to rebuild your house. Get that idea as well. Don’t just leave it on the insurance agent and don’t just trust that the agent knows exactly what that construction dollar amount is, because that’s a whole nother industry. Make sure you do your homework as well. Make sure your home is protected, because the last thing anybody wants is to have to come out of pocket after a total loss. It’s devastating. Marty Johnson, JMW Insurance Solutions, here to help you in any way we can. We got your back. Talk to you soon.