Do you have adequate homeowner's insurance?

Surprisingly most homeowners either reply yes or I think so.  We usually don’t find out the true answer to that question until we have a claim.  That is when many homeowners find out they didn’t have enough coverage or were not covered; making a bad situation worse.

It has been my experience that most homeowners purchase their homeowners insurance during their initial purchase or a refinance and get just enough to cover the required amount by the lender and/or the least expensive.  This can be a costly mistake.

Lets face it, none of us like paying insurance premiums until the day comes when we have to use it.  And I’m sure you’re familiar with the cliché, “Hind sight is twenty-twenty”…  So now is the time to get out your homeowners policy and make sure you have adequate coverage.  Here are a few things to look for:

• If you are being sued does your policy offer adequate coverage? (Remember that you should have enough insurance to cover your home, possessions as well as money left for additional liabilities.)

•  If you experience a loss or your home is completely destroyed; do you have enough coverage to replace your home?  (Many homeowners after Hurricane Katrina found out they were not adequately covered or not covered at all.)

•  Are you in a flood zone?  If so; do you have flood insurance?  What kind of flooding does it cover?

•  Does your policy cover wind damage?

•  If your home is beyond repair and you have to rebuild, does your policy cover the replacement and provide funds for a place to live during the rebuilding of your home?

These are just a couple of questions you should know the answers to and make sure your policy offers adequate coverage.  Homeowners that live along coastal areas such as Jacksonville, Daytona Beach, Ft. Lauderdale, Hilton Head Island, Bluffton, Beaufort, Myrtle Beach, Savannah, Ocean City or any of the many beautiful towns along the coastal areas should be aware of the different hazards that living on the coast can bring and make sure you have addressed those concerns with your insurance agent.  My brother, Dr. Charles Nivens lives in the Hilton Head/Bluffton area and although he does not live on the ocean he does live in an area with marshes and wet lands right in his back yard.  Because of that he had to address issues with his homeowner policy that those of us who don’t live in coastal areas don’t have to worry about. 

Here’s the bottom line; take a few minutes out of your busy schedule to make sure you have adequate coverage.  Whether in Ocean City, Charleston, Columbia or Ft. Lauderdale take those few minutes... they could be worth thousands of dollars to you in the future.