Is your home is properly insured?

The true replacement cost of your home today is significantly higher than even a couple years ago. Building materials and labor cost increases have outpaced inflation on most homeowner’s policies. With many insurers no longer offering guaranteed replacement cost, reviewing your building coverage limit is a critical component to proper risk management.

There are three VERY different valuations on your home.

• First, there is the fair market value which is typically the sales or contract price.
   
  
• Secondly, there is the tax assessed value which the county or city uses related to their tax base.
  
  
• Thirdly which is the most important when it comes to insuring your HOME, is the Replacement cost of your home.  This is what it would cost to rebuild your home with today’s costs.  Some costs of building materials have increased tremendously.  Take for example; lumber in the last 4 years has more than quadrupled in price.  Copper for electrical wiring has more than doubled.  Carpet is on the rise due to petroleum prices, heating and cooling equipment are taking substantial price increases as well.  All of these are necessary materials to rebuild your house in today’s market. 

Make sure you have enough coverage to replace your home the way it is today.

So do yourself a favor and review your homeowner’s insurance policy.
 
If you have any additional questions, please call James River Insurance Agency at (804) 423-8372.  We are here to help you any way we can.