It doesn't matter if it's a sprawling mansion or a cozy bungalow, a suburban rambler or an in-city townhouse, there's no place like home. And when it comes to insurance, your home is probably worth much more than you think.

The amount you paid when you bought your home isn't important. Neither is the current market value or the price you could get if you were selling. What really matters is the rebuilding cost of your home.

Rebuilding cost is the amount it would take to completely reproduce your home from scratch today -- same number of rooms, same quality of materials, same unique features, same location.

Quite often a home is insured for much less than what it would cost to replace. If something does happen, people can be in for an unpleasant surprise if they don't have their home insured for what it would cost to rebuild.

Matching the original materials and quality of construction in your home can increase your rebuilding costs. For example, details like hardwood floors, built-in bookcases and brick fireplaces can be difficult -- and expensive -- to replace. The price of labor and materials in your area as well as local building codes can also drive up your replacement costs.

If you haven't reviewed your homeowners policy in the last few years, it's probably well worth the time to do so now With updated information about your home, your insurance agent will be able to make sure you have enough coverage. Getting together with your agent to review your homeowners policy is one of the smartest things you can do. If your home is underinsured, the time to find out is now -- before something happens.

Underinsurance is a nationwide concern. Some insurance industry analysts believe two thirds of all U.S. homes are underinsured by as much as 10 to 15 percent. How does this happen? Many people underestimate the value of their home, while others fail to update their insurance after making improvements or additions. Even though some homeowners will have to pay higher premiums because they are underinsured, most are willing to pay a little bit more for the peace of mind of knowing they're covered.

For more information on homeowners insurance, please call us or contact us using our contact form.