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  • Writer's pictureGretchen Schmidt

Think You're Covered? Discover the Hidden Gaps in Your Home Insurance!

Updated: Jun 13


Do you have the right coverage for your home?


You never know if and when something will happen — whether it’s a big catastrophe such as a house fire or something less destructive – so you need to be prepared!


Take the time to read today’s article, Make Sure You Have Enough Homeowners/Condo Insurance, to guarantee that your home (and your pocketbook!) is protected.


You’ll learn that your homeowner’s insurance policy is a collection of different kinds of coverage – fire, theft, etc. – and that you need to make sure you’ve got enough of each for your home and its potential risks.


Let me know if you have any questions about your current coverage and if you’re not sure about upgrading it. And, don’t hesitate to reach out if you have any other homeowner questions or if you’re starting to think about selling your home. I’m here to help!


As always, I am your go-to resource for all things real estate.


Make Sure You Have Enough Homeowners/Condo Insurance

You never know if and when something will happen — whether it’s a big catastrophe or something less destructive – so you need to be prepared!


It’s essential to choose the right company, the right price, and the right coverage for your specific situation. 


Keep in mind, homeowners insurance is really a collection of different kinds of coverage such as fire, theft, liability and broken pipes wrapped up into a single policy.


Whether you’re a current homeowner who may need to upgrade your coverage or a potential new buyer who is purchasing home insurance for the first time, review these steps so you have the right coverage for YOU:


How Do You Determine Coverage?

Your coverage could be based on the square footage of your home, but it must also factor in how much it will cost per square foot to rebuild in case of disaster.  


The costs to rebuild in the Puget Sound area are higher than the national average, so go a little higher than your insurance company may suggest.


Your insurance company will most likely require you to purchase coverage that insures 80% of the replacement value of the home.


Be sure to take into consideration everything that you have inside the home, which will also need to be replaced in the event of disaster.


Do You Have Enough Coverage?

Get current information about what your home is worth today, and how much it would cost to rebuild it. Again, you may want to go higher to reflect the Puget Sound area’s average costs to rebuild.


Make sure that your deductible is set at a price that you can afford in the event that you must rebuild or do extensive repairs to your home.


If you’ve got a special art collection or a home office with expensive computers and equipment, you should be sure to let your agent know so that they can inform you about any additional riders that might be necessary.


Do You Have the Right Condo Coverage?

If you own a condo, you need a special type of homeowners policy HO-6. Your HOA has insurance coverage for the building, but only not for the walls or contents of your condo. There are several levels of coverage, so your insurance agent needs a copy of the HOA Certificate of Insurance so they know where the HOA policy ends and your policy should begin. They need to know things like:

·       The deductible for individuals

·       Interior structure

·       Personal belongings

·       Personal liability

·       Shared losses


What About Flood Insurance?

You might not need think you need flood insurance, but talk to your agent about coverage for flooded basements and burst pipes.


Being covered for the water damage from a flood in your basement is different than having flood insurance.  Talk to your insurance agent about the difference and make sure you’re covered if you end up with water in your basement, which is unfortunately very common in this area.


Do You Need to Upgrade?

For current homeowners, meet with your insurance agent to discuss what coverage you have now and let them know about any new home improvements or any new possessions that should be included in your policy.


Your agent will come out and document these upgrades, take photographs, and let you know if you will need additional coverage.


If you need recommendations for an insurance agent, let me know. As always, I am your go-to resource for all things real estate.


Stay tuned next week for a deeper dive into Flood Insurance. Do we really need it here?

 

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