Do you have enough homeowners insurance for these uncertain times?
As you navigate today’s uncertain world, where you may be seeing the value of your investments fluctuate unpredictably and perhaps depreciate, it’s more important than ever to protect your most important investment—your home.
Take some time to review your home insurance policy and assess whether you have enough coverage to fully protect your home, your belongings, and your family in the event of theft, fire, and natural causes.
Recovery may cost more than you think
You might be surprised to find out how much it costs to rebuild or repair your home after a loss, repair a damaged piece of fine art, or defend yourself against a lawsuit alleging negligence on your part. These expenses can easily rise into the tens of thousands—and sometimes millions—of dollars. However, with enough insurance, and the right types of coverage in place, you may be able to avoid having to dip into your savings or cash in your investments.
But how much is enough? These eight questions can help you assess whether you may need to modify your coverage or increase your coverage limits.
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How old is your home?
If your older home gets damaged, it may need to be brought up to code when you do repairs. Common repairs include replacing all the electrical wiring in a house or upgrading the home’s air-conditioning system.
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Did you have custom work done?
Check whether your policy covers the cost to replace the things that make your house a home, such as custom cabinets—some policies don’t pay for these types of upgrades.
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How will inflation impact the cost of rebuilding?
Costs for skilled labour and building materials generally increase year over year.
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How much will it cost to repair or replace or your home after an incident due to natural causes?
Make sure that your building limit will cover you in a worst-case scenario. After an event, the costs of building materials and skilled labour can increase substantially.
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Will your policy pay to fully replace your belongings?
Many policies will only pay Replacement Cost subjected to depreciation and under insurance, which means your payment will be based on the age and condition of your belongings. Find out if your insurance company offers Replacement Cost coverage, which provides for the amount it costs to replace your possessions today, without a deduction for depreciation.
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Do you own fine art, jewellery, wine, or other collectibles?
If you have more than a couple of pieces or they are very valuable, you may need a separate policy to fully cover them.
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Do you know what you have?
If a fire were to destroy your home, would you know what you needed to replace? Consider creating a home inventory to keep track of your possessions and valuable personal items. This can also be a good way to keep a record of your receipts, which your company may request as part of the claims filing process.
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Do you have protection from lawsuits?
Your home policy will provide payments for some liability claims, up to a certain amount. But what if you’re sued for damages that are larger than what your policy will cover? That’s when our Masterpiece Personal Liability cover comes into play.
If you would like to find out more on how you can get an accurate analysis of insurance coverage for your home, leave your contact details via the 'Contact Me' button below and our representatives will get in touch with you.
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Disclaimer - The content of the above article is not intended to constitute professional advice. Although all content is believed to be accurate, Chubb Insurance Singapore Limited (Chubb) makes no warranty or guarantee about the accuracy, completeness, or adequacy of the content of this article. Users relying on any content do so at their own risk.
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