You probably always intended to read every word in your Illinois home insurance policy, but never did. You are not alone. Many people only skim the surface of their policies and are not fully aware of what it covers. Insurance policies are large and complex, but knowing what your policy covers is important. Two things that you should check in your policy are dwelling coverage and replacement coverage.
Dwelling Coverage
Many people make the assumption that if their home burned up tomorrow, their insurance coverage would simply replace it. However, if you did not insure your dwelling for the proper amount, or failed to update a policy, you may have financial problems.
For instance, if you did not insure your home for the full amount required to replace it, then you would be short money when re-building. When construction costs rise, your dwelling coverage needs to be increased to keep up, so it’s a good idea to review your policy periodically.
Often, people add new patios, additional bedrooms, or a home office. Homeowners should notify insurance agents of home additions. Home improvement projects can increase the cost of rebuilding your house so they too need coverage on the homeowner’s policy.
Replacement Value
Policies often cover the current value of personal possessions, which includes depreciation and wear. Many people assume they have replacement value, which reimburses homeowners for the price of a new item. It pays to be sure whether you have actual value or replacement value coverage.
These examples may persuade you to read your Illinois home insurance policy more thoroughly. Contact your agent with questions.
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