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NJ Home prices still up 40 percent from 2001. Do you have enough coverage?

It is important that your homeowner’s coverage is indicative of the actual value of your home. Otherwise you could be facing the harsh reality of underinsurance in a time of tragedy. Here are some steps to take to stay savvy on not only your home’s value, but also your home’s insurance.

  • Check Out the “For Sale” signs – In order to get a good idea of what your home is worth check out comparable homes that are selling in your area. You may be shocked. In some areas of South Jersey home values have doubled in the past 4 years.
  • Check Out Your Current Coverage – Check your declarations sheet of your homeowner’s policy or call your insurance company to find out just how much your home is valued for insurance purposes.
  • Call an appraiser – If you can not find a comparable home in your area to get an approximate value call on a real estate appraiser. For about $100 an appraiser should be able to give you a very accurate idea of what your home is worth. Many insurance companies require that an appraiser investigate your home before they increase the coverage on your house.

If the value of your home exceeds the amount covered on your insurance plan you may need to look into increasing your coverage.