How Much Coverage Do You Need? by Charles E. Williamson (NAPSA)—Home values are dipping throughout the U.S., but Kye Sa this trend has no bearing on what it would cost to rebuild a residence shoulda fire or natural disaster strike. This rebuilding cost should be the basis of one’s homeowners insurance policy, but an estimated 29 percent of policyholders report they don’t know the type of replacement cost coverage they have, and more than 40 percent have not informed their providers about major home improvements that would affect coverage amounts, according to J.D. Power Independent insurance brokers can help ensure you’re covered fully if disaster strikes. To make matters worse, the put limits on how muchthey will and Associates. cost to rebuild one’s homehas sky- pay if your house needs to be rocketed in recent years due to rebuilt after a disaster. rials, fuel and labor. Millions of homeowners remain unaware of the risks posed by inadequate or inappropriate ally. In addition to addressing spiraling prices of building mate- Review your coverage annu- financial success could actually outgrow the capabilities of their longtime insurers. changes on your end, there may be new products on the market to enhance yourprotection. Consider whether you need a separate policy for fine art, jewelry, wine, antiques and othercollectibles. Homeownerspolicies cap limits on “contents” coverage. pendent insurance broker who can review your individual cir- broader protection. homeowners insurance. Additionally, those who have achieved The solution? Consult an inde- cumstances and recommend the company best suited to your needs. These advisers represent providers that offer more robust products and services—providers you can’t access on your own. What You Can Do Here are some ways to address the under-insurance problem before it’s too late: e Be sure your insurance coverage is equal to the replacement value of your home and posses- Insuring high-value collections more appropriately can provide Finally, look beyond the pol- icy. With some providers, coverage comes with value-added services designed to lessen the likelihood of property damage. You also want to know that your claims will be handled with superior service and personal attention. There are two costs of insurance: the insurancepolicy itself and the hidden costs of a claim: out-of-pocket expenses, time and ageravation. With proper manage- sions (an independent broker can ment, insurance becomes not only increasing your coverage limits can impact your annual premium, but also more affordable overall. do this assessment for you). While some providers offset the expense with high-deductible options. Know what is—and isn’t— included in your policy. For exam- ple, “mass-market” insurancepoli- cies exclude flood coverage and more effective at protecting you, Charles E. Williamson is president of AIG Private Client Group, a division within American International Group, Inc. that provides high-end property and liability insurance to individuals and families. Visit www.aigpcg.com.
