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Is your home underinsured?

Adding a room, finishing the basement with a lavish entertainment center, expanding the kitchen or bathroom, and other major remodeling will materially affect the cost of rebuilding the home if it is destroyed. If the homeowner didn’t inform the agent and have the coverage limit for the home raised appropriately, the home could be underinsured. The personal property could be underinsured, too. The amount of personal property coverage is typically set as a percentage of the home structure value listed on the policy. If the homeowner purchased additional or upgraded furnishings as part of the remodeling but didn’t adjust the home value, he or she may not have enough personal property coverage. The best course of action is to inform the insurance agent before remodeling starts. The agent will be able to discuss appropriate coverage levels after completion as well as special risks to address during the course of construction, especially if the owners reside elsewhere while the work is being done. BHS is always available to discuss your home renovations and make sure your home is properly covered. To review your home owner policy, fill out the Contact Us form on the right or call us at (800) 350-7676. Adapted in part from Property Casualty 360