Is It Time To Update Your Homeowners Policy?

Lenders require homeowners to carry an insurance policy to protect their interest in the event of a loss. The State of Missouri doesn’t force you to buy coverage, although it definitely provides a sense of financial security. But what type of policy and how much coverage can be a gray area for many homeowners. Our Epic Insurance professionals are here to help people in the Lees Summit, MO community. We’re available to answer questions and will work with you to update a policy to reflect your current coverage needs.

The True Cost of Rebuilding

It seems logical to carry replacement coverage in the amount of a home’s value. Unfortunately, there is no one-to-one cost basis. Homes depreciate over time and the real estate market rises and falls. Just consider property values before and after the last housing market crisis.

Construction is determined by a separate set of factors that include the price of materials, cost of labor and regulations, among other things. To rebuild a home after a total loss could cost upwards of $150 per square foot. That number doesn’t include demolition, debris removal and permitting. Older homes and those with high-end design, woodworking and materials require the workmanship of skilled craftsman and expensive products. If you want to restore your home to its original luster, that could far exceed $150 per square foot.

Assets Evaluation

When it comes time to renew your policy, take time to make an inventory of the assets you’ve accumulated. Many policies cover personal items on a percentage basis of the home’s value. But as you acquire high-end items, that coverage may be insufficient. Tally up what you own and go over it with your agent. Don’t get caught underinsured.

Epic Insurance proudly serves the people of Lees Summit, MO. Our insurance professionals are available to review and update your homeowners policy to ensure it provides you with secure coverage.