With all the recent catastrophic weather events that have taken place over the last few years, especially here in Texas, folks are finding out that unknown to them they didn’t have enough coverage or they had the wrong kind of coverage.
It is estimated that at least 60% of homes are at least 26% under-insured; this means that the amount of insurance coverage on the home is not enough to rebuild the home in the event of a loss. There are many reasons why this occurs,
- you may have done renovations that are not reflected in the existing policy
- you had the policy for years and the coverage amount has not been reviewed and updated as building cost increased
- your policy is an Actual Cash Value policy instead of Replacement Cost
Whatever the reason being “under-insured” can potentially ruin your future and be a financial disaster. Many homeowners do not take the time to actually read their policies (who wants to struggle through 40 pages of insurance gibberish?), so they don’t really know what kind of policy they have, how much it covers or what it covers. Don’t be fooled by low premiums, as with anything else, you get what you pay for with insurance policies.
When it is time to renew your homeowners’ policy find an agent that will take the time to explain all of the coverages, estimate the cost of reconstruction of the dwelling and any other structures based on local labor and material cost. Farmers’ policies include an automatic inflation guard so the coverage amount keeps up with reconstruction amounts; this is a great feature that gives the client peace of mind! As a Farmers agent I offer an annual Farmers Friendly Review so that I can make sure my clients and prospective clients are comfortable with the coverage and features they have, insuring that they are aligned with each individual’s needs.
Give the Luci Temple Insurance Agency a call at 512-913-9637 or email us today at LTemple@FarmersAgent.com so we can go over your coverage and make sure you are fully insured, just in case the unthinkable happens!