Make Sure Your Home's Value is Up-to-Date

Have you noticed the growing popularity in home improvement? It seems like almost every town has at least one home improvement store.

As consumers, we have become so much more focused on improving our homes' functionality and value. This, in turn, has led to us pouring more money into our homes in recent years, upgrading our kitchens or bathrooms, or adding on to our backyard decks.

According to a recent article in the Wall Street Journal, in 2005 consumers spent an estimated $155 billion on home improvements. This is up 27% from 2004.

At the same time, there has been a drastic increase in commodities' pricing, lumber, copper piping and other necessities. Labor costs have also seen a significant jump, going up an average of 7% a year since 2001.

Therefore, to face these challenges, we must become faithful stewards in making sure our home's replacement cost is accurate. Taking the time to proactively communicate with your agent of possible improvements is essential.

Even if no changes have been made to your home, it is critical to have us rerun a replacement cost estimate every couple of years to determine if the true 100% replacement cost has changed.

The worst possible time to discover you had an insufficient amount of coverage is at the time of a loss. Call us so we can review your home's replacement cost.

What To Do In Case Of A Loss

If you have a possible claim, here are some suggestions to increase your comfort and confidence about resolving the situation to the best of your ability.

First, what needs to be done to stabilize the situation?

Loss involving damage to property: Make reasonable decisions to protect the property and minimize risk of further loss or increased costs. This makes sense even if you are uninsured. If coverage applies, this is expected.

Loss involving personal injuries: There may be limits to what you can do to stabilize the situation. Obtain identities and information about injuries and treatment, if you can reasonably do so.

Generally, try to not alter physical evidence or dispose of materials until there is an opportunity for inspections and possible evidence retention. If physical evidence requires alteration to further protect property or life, careful decisions are in order. Preserve as much as possible.

Second, contact our agency. Provide all available information, alternate phone numbers are helpful, as well as e-mail addresses, especially in the case of a loss that forces you out of your home. Our agency is a valuable resource, with experience, insight and familiarity with our community.

Third, if repairs will be needed, begin to identify who you might hire to do that work. Your selection of someone to do the repairs to your satisfaction is important.

Fourth, collect and maintain documentation related to the event; retain receipts and invoices; and make notes to assure that you will have an effective record of the event and its consequences.

Following these suggestions immediately after a loss will help you move through the experience with the information needed to make effective decisions.