How Do I Know If My Home Is Underinsured?

If you have purchased a homeowners insurance policy, you may have wondered at some point what all is covered and if you have any gaps in your coverage. Unfortunately, the reality is that just because you have a homeowners insurance policy, that does not mean that you are completely protected. Since your home is one of your most valuable assets, you want to make sure that it is totally protected in case of any issues, so it is crucial to understand what your policy covers. If you are located in San Diego, California and have questions about your homeowners insurance coverage, Windfall Insurance Services Inc. can help. Read on to learn more about how to ensure your property is fully covered by your homeowners insurance policy.

What Does It Mean To Be Underinsured?

Homeowners insurance is intended to provide financial protection to repair or replace your home in the event that unexpected damage occurs to your property. It typically covers your home, personal belongings, and any other structures that are on your property. If your home is underinsured, your policy is not comprehensive enough to the required costs of replacing or rebuilding your home if you need to file an insurance claim. In this situation, that means that you will be responsible for paying the difference out of pocket, which leaves you vulnerable to paying extremely expensive costs. If any of the following scenarios applied to you when you purchased your homeowners insurance policy, you will definitely want to review your coverage and make adjustments:

• Minimum coverage level - If you initially selected the lowest level of coverage in order to save money, you will still have some protection, however, it is likely not enough for your needs.
• Increased labor and materials cost - Due to several factors, the price of labor and materials to renovate homes has increased significantly. If you have not reviewed your policy recently, you will want to revisit it in the event that you need to increase your policy amount to compensate for these price hikes.
• An inventory of home items was not made - If you were unable to conduct a thorough inventory of your home and belongings when you moved into your home, you may not know how much your personal property is worth, and therefore, may not have the right amount of insurance coverage to replace it.

Ensure That Your Home Is Fully Protected

To make sure that your property is fully protected, it is critical to regularly review your homeowners insurance policy to make sure you have enough coverage to pay for repairs. In order to get an accurate idea of how much coverage you will require for your unique needs, it is important to work with your insurance provider to search for the most suitable policy.

If you have questions about homeowners insurance in San Diego, California, contact Windfall Insurance Services Inc. today for a consultation.