Having enough insurance to cover the replacement costs of your home is critically important when purchasing homeowner’s insurance. However, 59 percent of homeowners do not have enough homeowner’s insurance to protect their investment. These homeowners only have enough insurance to cover about 78 percent of the costs of replacing their home after a total loss. You can determine whether you are underinsured by considering the following.
Analyze Your Home Insurance Coverage 
Your existing policy is the best place to start to determine whether your coverage will be enough to replace your home. A thorough assessment of your all the coverage you have, along with the monetary limits associated with each coverage, will help you see areas of need in your policy.
Research Replacement Costs
The replacement costs for your home should be based on the costs of replacing your home today, with the current prices of building materials. If you have owned your home for a few years, the best way to determine the cost of replacing your home is to research homes similar to yours that have recently been constructed. By assessing the prices of these homes and factoring out the cost of the lot, you will have a good idea of what you should purchase for your homeowner’s insurance.
Talk to an Agent about Increasing Your Policy
After taking the time to complete your research, talking to your independent insurance agent will help you get the coverage you need for your property. He or she will examine available coverage options in order to ensure that you have enough insurance to cover your home.
Although you may never want to be in the position where you have to file a claim with your insurer, it is better to have enough coverage than not if you do have to file a claim in the future.
Do you have the right amount of coverage? Call McInnis Insurance Services at 844-926-0860 for more information on Baton Rouge home insurance.