Review Your Policy Limits

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    According to a recent survey conducted by Marshall & Swift Boeckh, a building cost information company, 59 percent of all homes in the United States are undervalued by 22 percent. This can wreak havoc on your efforts to rebuild in the event that a fire or disaster destroys your home.

    Before a disaster hits, consider taking these actions to remain fully insured and protected...


    • Review Your Policy Limits:
    Make sure that your home has sufficient coverage on an annual basis by contacting Marshall & Sterling, Inc. In addition to reviewing your policy limits once a year, you should also contact us if you’ve remodeled, made an addition or purchased an expensive item for your home.

    We also need to know if you’ve made a major lifestyle change – for example, been married or taken in an elderly parent who owns expensive heirlooms. With these lifestyle changes may come new things that need to be accounted for in case of a loss.

    Understand Your Policy:
    Read your policy to determine what exactly it covers. Most cover replacement costs, or payment for the cost to repair or replace damaged property using similar materials. A homeowners’ policy also covers your home’s contents, but coverage will vary based on your policy. You will want to purchase additional insurance to cover jewelry, collections, artwork and memorabilia.

    Purchase Additional Protection:
    A typical homeowners’ policy protects against fire, lightning, wind storm and many additional perils (check your policy for specifics). However, some homeowners’ policies do not protect against damage caused by floods, hurricanes or earthquakes. If you live in an area prone to any specific natural disasters, it is a good idea to look into additional coverage available as a stand-alone policy.

    Insure Home Improvements:
    When making a major change to your home, it is important to talk to Marshall & Sterling, Inc. about insuring those changes. Be sure to let us know the specifics so we can assure you that you have adequate coverage. If you remodeled a bathroom, we want to know whether you installed a standard bathtub or a whirlpool tub, or if your countertops are now made of marble – it all adds to the value of your home.

    Understand Rebuilding Costs:
    As a general rule, an average inland home costs about $150 per square foot to rebuild. Properties that are on water, on steep hills or are considered luxury homes are more costly to replace and could potentially cost upwards of $250 per square foot to rebuild. Consult a contractor for an estimate on your home today.

    Take Construction Costs into Account:
    Construction costs are on the rise, so your policy should reflect that. When reviewing your policy, consider the rising cost of materials, labor and supplies, and set your limits accordingly.

    Don’t Play the Guessing Game:
    Contact Marshall & Sterling, Inc. for assistance on determining the value of your home. That way, we can work together to create a policy that will protect your investments. We are ready to help and are just a phone call away!  Click here to find the branch office nearest you.