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Is your home insured to the proper value?

Is your home insured to its proper value? If you aren't sure that it is, you better call your insurance company right now.

Most consumers will try to save money on their insurance premium anywhere they can. Many people will do this by not insuring their home to the proper value. Often times an insured will only want to insure his or her house for the market value (what you could sell if for today). However, it might cost a significant amount more than market value to rebuild a home in the event of a loss.

When discussing your home insurance coverage with an agent, be sure to ask for a policy with "guaranteed" replacement cost. Ask your agent to show you the difference in a policy with guaranteed replacement cost and one without.

The difference in insurance premium to insure your home to the replacement value will not be significant when compared to the amount of protection that you will gain if you have a claim.