The most common concern to property owners while buying homeowners insurance Tampa Florida is whether they have insured their home to value. Here is how you can be sure that your Tampa homeowners insurance will cover the cost to rebuild your home if it were destroyed.
To start with, it is vital to understand that you do not insure your home to its market value, but you insure your home for the approximate total amount it would cost you to rebuild it if it were destroyed. If you undervalue it, your insurance provider may not pay for a portion of the cost of rebuilding, replacing, or repairing the damage caused. If you overvalue it, you pay more premium than necessary. Remember, it is not the market value of your home, but the cost to rebuild it.
Here are some vital tips to ensure that your homeowners insurance Tampa Florida is at value.
How Unique is Your Home?
Did you know, the uniqueness of your home only adds to the value? Make sure that you offer all details to your insurance provider so that they make an informed decision. Don’t forget to give detailed information about the layout, size, as well as the distinctive features of your home.
How Often Should You Review Your Policy?
Annual review of your homeowners insurance Tampa Florida with your service provider will keep you up to date with the fluctuating construction cost. Reviewing your policy will help you know whether you are in pace with the ongoing cost, and you can make changes if necessary.
At What Value Should You Insure Your Home?
Did you know that you can close coverage gaps if you insure your house at 100% of its value? You can also purchase replacement or repair cost protection for a fairly nominal fee. It increases the payout you would receive by as much as 25% of the amount of your home’s value mentioned in the policy.
Does Remodeling Help?
Remodeling a home only increases the market value of your home. When you remodel, don’t forget to get the property reviewed by your insurance provider and change your coverage as seen fit. Remember, it is vital to keep track of the difference in the valuation of the property.
Have You Heard of the 80% Rule?
Most insurance companies adhere to the 80% rule, which is believed to be the best way to insure your home to value. It means that an insurer will only fully cover the cost of damage to the property insured if you have purchased insurance coverage that is equal to at least 80% of the total replacement value of the property. If the coverage you buy is less than 80%, the amount paid by the insurance company will be proportionate to the amount of coverage purchased.
In addition to the above, you can also seek help from a component-based valuation system that uses computer programs to build your home virtually from the ground up and include all unique features as well. The system pulls data from the construction industry to evaluate the cost of rebuilding your property and provides you with a value at which to insure your home.
**This blog provides a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverage. These definitions do not alter or modify the terms of any insurance contract.