top of page

How Much Home Insurance is Enough

  • tobyselby
  • Aug 27, 2021
  • 4 min read

The cost to rebuild your home is its replacement value. This can be very different from the estimated market value or actual purchase price. In most cases, it costs more to rebuild the home you own than to buy a new one.


Arkansas- How much home insurance is right for you?

Based in Jonesboro, AR, Selby Insurance and Financial understands the home insurance needs of our customers. We’ll work with you to estimate the replacement cost for your home and to adjust your policy limits from time to time as needed.


It is critical that you provide us with accurate, updated information about your home and contents. If your dwelling limit accurately reflects your home’s true replacement cost, some companies will pay more than the limit if a covered loss is greater than the limit on your policy.


Once a review of your home and possessions indicates you are properly insured, it’s a good idea to reexamine your coverages and limits from time to time, especially whenever you make additions or improvements. Selby Insurance can help you re-evaluate your insurance needs, just give us a call at (870) 336-2121 to speak with one of our agents.

Arkansas - Be Sure You Have Enough Homeowners Insurance


Here are some steps you can take to reduce the danger of being seriously underinsured:

1. Call Selby Insurance, If you have questions or concerns about the limits in your policy, ask us to show you how those amounts were calculated. This will also give you an opportunity to make us aware of any overlooked information.

2. Read your policy. Certain property, such as jewelry, and certain perils, such as earthquake or flood, is better insured separately. Knowing what is covered and for how much will help you insure properly. If there is anything in your policy you don’t understand, contact Selby Insurance at (870) 336-2121 and ask for an explanation.

3. Review. At each annual renewal of your policy, you receive a new Policy Declarations page showing limits of coverage and optional coverages. Review this information. If you do any significant remodeling or add a family room, extra bedroom or bathroom, etc., tell us about these changes so your coverage limits can be adjusted to cover the improvement.

4. Consider carefully whether your policy provides all the protection you need. Does it provide coverage for extra costs resulting from building code changes? Does it automatically increase coverage limits annually to keep pace with inflation? Does it provide additional funds if the cost of rebuilding your home exceeds the policy limits?


Make sure you know:

  • Will your insurance company stand behind agreed upon repairs after a claim? Some companies are willing to put this guarantee in writing.

  • Does your policy include replacement cost coverage for contents (clothing, furniture, appliances, and other personal property inside your home)? If not, you can add it by endorsement. The cost is small, the protection valuable. Replacement Cost Coverage pays for losses to your possessions at the cost of brand new items. Without this option, a covered loss to your personal possessions would be depreciated by their age and condition, reducing the size of your claim settlement.

If you have an art collection, antique furniture, jewelry, or other valuable possessions, talk to your agents about supplemental coverages, such as fine arts or scheduled property endorsements, to adequately protect your investment in these items. The cost is modest for the extra protection, and often the deductible is waived.


Consider whether you should have more coverage for personal property (contents) than your policy provides. Personal property coverage is usually 70% of the coverage limit for the structure. Your limit may be lower than 70%. Supplemental protection is available for a small additional premium.


Inventory your home. Prepare an inventory of personal property items, update it periodically, and keep it in a safe place outside your home, such as a safe deposit box at your bank. It will save you hours of time trying to list everything damaged or destroyed if you need to make a claim. It will also help ensure you don’t forget some items. Selby Insurance can advise you on ways to simplify the job of preparing a personal property inventory such as videotaping each room with descriptive information on the sound track.


Personal Liability

Besides making sure you have enough protection to cover possible damage to your own home and contents, you should also evaluate your exposure to liability risks. These result from damage to the property of another, or injury to a person, not a member of your household, for which you can be responsible.


In recent years it’s become common for homeowners to be sued for injuries or damages to others, even when there is no evidence of negligence by the homeowner. The reality today is if you have any appreciable assets, you are exposed to the risk of being sued. Even if you ultimately prevail in court, your legal fees and the months or years of worry and uncertainty can be a terrible burden on you and your family.


The Personal Liability coverage provided by your Homeowners Policy usually provides a limit of $100,000 or $300,000. We recommend increasing this protection with a personal umbrella policy. Not only will it increase your personal liability, but also your auto liability. Limits are available from $1 million to $10 million and beyond. The cost of this coverage is usually very reasonable.


The right coverage for you is unique – Toby Selby today at Selby Insurance and Financial to find out how to get the best price and value on home insurance for you.

 
 
 

1 Comment


Mathias Isaac
Mathias Isaac
11 minutes ago

Entrepreneurs should check out home-based business insurance in Canada.

Like
Featured Posts
Recent Posts
Archive
Search By Tags
Follow Us
  • Facebook Basic Square
  • LinkedIn Social Icon

HEALTH

  • Facebook Social Icon
  • LinkedIn Social Icon

CONNECT WITH US:

870.336.2120

2216 Wilkins Avenue
Jonesboro, AR 72401

tobyselby@selbyinsurance.com
hopemartin@selbyinsurance.com

Monday-Thursday 8:30am-5:00pm

Friday 8:30am-4:00pm

This site has been published in the United States for residents of the United States. The entire site has been prepared solely for informational purposes, and nothing contained herein should be construed as an offer to buy or sell, or a solicitation to buy or sell, any security or other investment product or to participate in any particular trading strategy. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action. All views expressed and materials presented are subject to change without notice and are not intended and should not be construed as investment, tax, or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. All information is believed to be from reliable sources; however, no representation is made as to its completeness or accuracy.

Medicare Supplement rates may vary by zip code.  Insurance License # 3332053.  This person/agency is not employed or affiliated with Medicare, CMS, Social Security, or any other government agency.  Medicare Advantage Plans have cost associated with them.

 

*Stocks, mutual funds and variable products are not suitable for all investors. Before making any purchase you should carefully read the prospectus and prospectuses for the underlying investment portfolios of variable products. In addition to carefully reviewing the prospectus, you are advised to consider the investment objectives, risks and charges, and expenses of the investment before investing. A prospectus may be obtained from our office or directly from the mutual fund company, insurance company or offering entity. **Variable annuities are long-term investments designed for retirement purposes. Variable products have limitations, exclusions, charges, termination provisions and terms for keeping them in force. There is no guarantee that any variable investment options in a product will meet their stated goals or objectives. The account value is subject to market fluctuations and investment risk so that, when withdrawn, it may be worth more or less than its original value. ***Index or fixed annuities are not designed for short-term investments and may be subject to caps, restrictions, fees and surrender charges as described in the annuity contract. Annuity product guarantees including optional benefits, for both fixed and variable annuity products, rely on the financial strength of and are subject to the claims‐paying ability of the issuing company.

 

Employees or representatives of Selby Insurance and Financial may transact business in a particular state only if first registered, excluded or exempted from registration requirements. Toby Selby is an Investment Advisor Representative of Impact Legacy Retirement Group LLC, a registered investment adviser based in Springfield, MO.

 

Investment Advisory Services offered through Impact Legacy Retirement Group, LLC a registered investment advisor.

Insurance products and services are offered and sold through Selby Insurance and Financial, Inc.

All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Any statements referring to growing your income are not a guarantee or prediction of future performance. Any references to protection benefits, guarantees or lifetime income generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.  Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions.

 

By activating a third-party hyperlink you will leave our Selby Insurance and Financial website. Neither Selby Insurance and Financial nor Impact Legacy Group, LLC are responsible for the validity, completeness or accuracy of any information provided on these sites.

bottom of page