Most insurance companies no longer offer guaranteed replacement cost on your home owners insurance. The down side of this is it places the responsibility back on you to make sure you have sufficient coverage. You don’t want to have a fire or other disaster and find out that policy that you signed up for 10 years ago will only pay half of what it now costs to replace your home. Those aren’t the kind of surprises you want to find in the midst of an incredibly stressful time like the loss of your home.
The best tip is to find a company that does still provide guaranteed home replacement cost. But if you don’t want to change or you really like your current agent, schedule a meeting every year or two with your agent to review your current coverage. (It’s a good idea to do this anyhow as life changes may have impacted your insurance needs.) When you meet with your agent be sure to discuss your home’s current value and verify you have sufficient coverage.
Insurance is one of those things that covers us for circumstances we hope we never face. The last thing you want if you find yourself in one of those circumstances is to discover you don’t have the coverage you thought you had. Spend a few minutes today just to make sure you are covered sufficiently.