Update your homeowners insurance!

[RSKY]

I talked to a lady Tuesday who had lost everything in a house fire. She was a nurse practitioner at a clinic I had to go to (routine checkup). She said her and her nineteen year old son were at one end of the house watching TV when they heard a noise and somebody started beating on the front door. It was a neighbor screaming that the house was on fire. Smoke alarms never went off. By the time they got their shoes on and got out the house was pretty much gone at one end. No way to get anything out. They lost everything. It was a one story house that had been added on to a couple times.

She said they had lived in the house for more than twenty years and had never updated their insurance. With what they got they could afford to build or buy a house a little over half the size that burned.

Check your coverage and make sure you could rebuild for what you would get in a total loss situation. Building costs have gone up dramatically in the last ten years.

RSKY

 

[part-time-Farmer-NC]

Good idea, Farm Bureau updated our policy amount about 2 yrs ago. I'm sure it was to justify the higher ins rates, but I can feel a little better if something happens.

 

[garry1p]

I was surprised when living in OK talking to the insurance agent I told him if my house burned down I would just take the cash and build a smaller house. He said you can't do that there is no cash payout your policy covers cleanup and rebuild to the same size on the same lot.

Sometimes it's the wording of the policy mumble jumble that can surprise you.

 

[part-time-Farmer-NC]

Interesting... I would a thought the same thing, I'd take the cash and build closer to my pond.

I have heard of insurance companies making the checks out to builders/homeowners. This I supposed was to ensure they get rebuilt and homeowner wouldn't run off with the cash stiffing the bank.

 

[RSKY]

Good idea, Farm Bureau updated our policy amount about 2 yrs ago. I'm sure it was to justify the higher ins rates, but I can feel a little better if something happens.

I don't know where you live but about 10-15 years ago the state made Farm Bureau update all their homeowners policies due to complaints about them underinsuring homes. My youngest had just started working at a large independent agency and was very concerned about this before the state regulators stepped in. She went to both grandparents and looked at their policies. Neither had been updated in more than twenty years and my father in laws would not have bought a single wide trailer if his house burned. She kept on us until we changed to a different carrier. She ended up being over the agency's commercial division and her main concern was keeping her customers policies updated.

RSKY