Make Sure You Have Enough Homeowners/Condo Insurance

You never know if and when something will happen — whether it’s a big catastrophe or something less destructive – so you need to be prepared!

It’s essential to choose the right company, the right price, and the right coverage for your specific situation.  

Keep in mind, homeowners insurance is really a collection of different kinds of coverage such as fire, theft, liability, and windstorm wrapped up into a single policy.

Whether you’re a current homeowner who may need to upgrade your coverage or a potential new buyer who is purchasing home insurance for the first time, review these steps so you have the right coverage for YOU:

How Do You Determine Coverage?

Your coverage should be based on the square footage of your home, and it must also factor in how much it will cost per square foot to rebuild in case of disaster.   

It should take into consideration any upgrades you have made, such as quartz countertops and LVP flooring.

Your insurance company will most likely require you to purchase coverage that insures 80% of the replacement value of the home.

Be sure to take into consideration everything that you have inside the home, which will also need to be replaced in the event of a disaster.

Ask your insurance agent to walk you through exactly what types of events are covered. For example, in our area, some policies exclude damage from “wind-driven rain,” (think hurricane rain). You want to make sure you have the coverage you think you do.

Do You Have Enough Coverage?

Get current information about what your home is worth today, and how much it would cost to rebuild it.

Make sure that your deductible is set at a price that you can afford in the event that you must rebuild or do extensive repairs to your home.

If you have a special art collection or a home office with equipment and supplies, for example, you should be sure to let your agent know so that they can inform you about any additional riders that might be necessary.

If you are right on the North Carolina coast, pay special attention to insurance and what can be rebuilt in the event of a catastrophic storm. There are some homes, that because of changing coastlines, will not be permitted to be rebuilt in the event a storm destroys 50% or more of the home. This is usually only in certain areas on the oceanfront – just something to be aware of. Email me at kim@thecoastalrealestategroup.com for more information and questions about this.

What About Flood Insurance?

Flood insurance in coastal North Carolina can vary from house to house, depending on the flood zone. If you have a mortgage, your lender may require it, again depending on the flood zone. Some homes in the COBRA zone aren’t eligible for flood insurance through FEMA, and private policies are needed. These can be quite costly. Some homes in for example, the X Zone, may not require flood insurance at all, and you may choose to get it anyway to protect yourself.

Talk to your realtor, lender, and insurance agent to find out what is required before you buy. Then, as our coastline is always changing, pay attention to changes in flood zone maps. This may affect your flood insurance costs and eligibility.

Do You Need to Upgrade?

For current homeowners, meet with your insurance agent to discuss what coverage you have now and let them know about any new home improvements or any new possessions that should be included in your policy. 

Your agent will come out and document these upgrades, take photographs, and let you know if you will need additional coverage. If you need any insurance agent referrals, please reach out to me at kim@thecoastalrealestategroup.com.