Personal Property Insurance to Value
It is important to take care with the amount of insurance you choose for your home.
Other coverage amounts on your policy, such as the allocation for contents, are also usually proportioned to the building amount. Taking the time to understand how your coverage works can help you make sure the things you value are adequately covered, starting with the correct replacement cost for your home.
This number is not the same as the real estate value – it is what it would cost to rebuild your home, as a single, priority project, after a loss. Remember that usual economies of scale or scheduling are not available for a rush, unplanned reconstruction. Building materials may not be readily available and premiums will have to be paid to obtain necessary skilled workers. The builder will also in-cure expenses for clean up and demolition even before any re-construction can begin.
Your FCA broker can help you determine what the appropriate insurance amount should be to ensure that everything you value is adequately covered. They will work with you, using the current information about your home, to find the most accurate number. Also, they can assist you in arranging for Insurers or an independent appraiser to evaluate your property.