The Insurance Information Institute has recommended that Illinois home insurance policyholders, along with others across the country, should undertake regular financial checkups to help ensure that any necessary updates to their home insurance are carried out. Essentially, the recommendations are that coverage should be adequate for the following:
The Structure of the Home
It is necessary to base the homeowners insurance on the reconstruction cost of your home if it should be destroyed in a peril, such fire or natural disaster. This is not what you paid for the house, but how much it would cost to rebuild. This may have changed over the years. You should not include the value of your land in property insurance coverage.
Your Personal Possessions
These may change markedly over the years. New items, such as that expensive flat screen TV, may have been added. Carry out a regular inventory update and make sure you have adequate insurance to give coverage for these goods.
Make Sure Your Relocation Expenses are Included
Should you need to relocate while your house is being repaired or rebuilt due to a disaster, the cost can be significant. For that reason you should ensure that relocation expenses are included in your insurance. This coverage is known as “additional living expenses”.
As well as the above, liability coverage should be included in your Illinois home insurance. Talk to one of our agents for further information about obtaining the right type of home insurance to suit your situation!
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