Insurance is not simple. Whether you’re purchasing Connecticut homeowners insurance or you’re already covered, it’s important to know your policy. The more you know, the more able you are to strike a balance between staying safe and saving money. Here are a few basic points to consider when looking over your policy.
Don’t Under do It
It can be tempting to choose the cheapest option out there because saving money in the short-term feels good. However, the feeling of saving a buck now can lead to severe losses in the future. According to a 2008 survey by Marshall & Swift/Boeckh (MSB), 64 percent of U.S. homes are undervalued with regard to insurance. Moreover, of that 64 percent, the average person only has enough insurance to reconstruct 81 percent of his or her house.
With these numbers in mind, it’s imperative to thoroughly research your Connecticut homeowners insurance and to calculate what it would cost to rebuild your home. This is particularly true if you consider the potential effects of a New England storm like Hurricane Irene, which destroyed its fair share of houses in 2011.
Another important part of assessing your homeowners insurance is flooding. Sometimes people assume that flooding insurance is included, but this is not always the case. If you aren’t sure, you can contact your insurance provider to get more information. They will be able to help guide you in the right direction. In the end, you want to be certain that you have all the information you need to make the right choices.