Market
Value vs. Replacement Cost
When deciding how much insurance you need to cover your home, think
replacement cost rather than market value.
Most people
tend to think about the market value, which is the selling price of your
home. This value goes up or down based on the economy, the supply and
demand for homes in your neighborhood, local employment levels and other
factors. Replacement cost, on the other hand, is the amount it would take
to rebuild your home at today's prices. If your home suffered devastating
damage you want enough insurance to pay the cost to rebuild. Make sure
your home and personal property are adequately covered. It is important to
have your insurance agent help you estimate how much coverage you'd need
to actually replace your home and cover your personal property.
The amount of
your mortgage balance is totally irrelevant to the amount of homeowner
guaranteed replacement cost insurance you should carry. In many states,
over insuring for more than replacement cost is illegal-because over
insurance encourages arson. Be sure your guaranteed replacement cost
policy includes a building code endorsement. That means the rebuilt home
will be constructed to today's building codes, not the codes in force when
your home was originally built. Waterfront homes and condos.
Start with
a guaranteed replacement cost insurance policy.
Raise your deductible to $500 or $1,000 for each loss.
Compare policy costs with several insurance agents.
Consider whether you need depreciated or full replacement cost personal
property insurance.
Review your liability coverage to see if an umbrella policy will give you
better protection at lower cost.
Insurance
Hard to Get
Obtaining homeowners insurance in Florida has in some cases become an
inconvenience mainly due to past hurricanes and/or flooding in the area
and because state law forces the company to offer flood insurance. A few
areas the consumer may find it hard to get coverage include: Sales in
beachfront/island areas or near flood zones and older homes.
Take
Inventory Now
Imagine coming home some night and finding your home burglarized,
vandalized or burned. Would you remember all the items missing or
destroyed, and their value?
Keep
Accurate Records of Your Household Possessions
- Make a list of items in each room as you move in.
- Write down serial numbers if they have them.
- Take photos or video's of items in each room.
- Put the owner's manuals of items you purchase along with their receipts
together.
- Keep in a safe storage spot.
Burglary Prevention Tips
- Put up a Beware of Dog sign.
- Give your home a lived-in look.
- Keep garage doors closed and locked.
- Leave a radio on. It signals that someone is home.
- Trim shrubs around doors and windows so that anyone can be seen more
easily.
- Set inexpensive timers to turn on lights in different rooms at different
times.
- Leave shades and drapes open. If closed, it's a sign you're gone.
- Place lamps close to windows to obscure a view inside.
- Install outside lighting that is activated by motion.
- Join or start a neighborhood watch program.
Coldwell Banker
8240 Mills Drive
Miami, Fl 33183
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