Is my insurance coverage adequate?

Check your policy for flood and windstorm coverage

Standard homeowners policies do not cover flood damage caused by rising water. There is a waiting period from the time you purchase the insurance to the time it takes effect. Check your policy regarding damage from wind, hail and lightning to verify that you have windstorm coverage. 

Verify that your homeowner's policy covers contents and living expense coverage.  Renters may need to purchase contents and living expense coverage.

Ask your insurance agent about Law and Ordinance insurance coverage.

Make sure you have adequate coverage

Consider increasing your coverage if your policy doesn't cover the current value of your home and its contents. If you live in a condominium, check what coverage you have through your condominium association. Know the coverage for which you are responsible. Find out if your policy will pay replacement cost or actual cash value in the event of a loss.

Replacement cost is the dollar amount needed to replace or repair your damaged property with materials of similar kind and quality. Actual cash value is the dollar amount needed to replace or repair your damaged property after depreciation. Yearly inflation or renovations increase the replacement cost of your home and its contents, while the actual cash value may decrease over time.

Update your list of personal belongings

Make an itemized inventory of your belongings, including costs, purchase dates and serial numbers. Dated photographs or videotapes of your possessions are a good idea. Keep a copy of your important insurance records in a safe deposit box or with a relative or friend.