Increase Your Home Insurance Coverage
Work with your insurance company or agent to make sure you have enough homeowners insurance to rebuild your house if it is totally destroyed. Let your insurer know about any additions, home improvements or upgraded materials.
Get extended replacement cost coverage, which adds 25% to 50% to the coverage amount if the cost of labor or materials rises. Keep an updated home inventory so you can get credit for all of your possessions and speed up the claims process (make a video of each room with your smartphone, making sure to open closets and drawers). Coverage for jewelry and other valuables is often limited under home insurance policies, but you can add coverage up to an item’s appraised value.
If you don’t own a home, renters insurance is an inexpensive way to cover your possessions and protect against liability claims if, for example, someone gets hurt in your apartment. It typically costs $150 to $250 per year for $20,000 to $30,000 in contents coverage and $100,000 to $300,000 in liability coverage.
