 |
Are You Sure You Have Enough Insurance?
( Page 2 of 2 )
October 2005
Another critical factor behind the nation’s underinsurance
problem: the rush to remodel that adds billions
of dollars of value to homes each year. Have you added
a kitchen to die for or a media room? Did you remember
to tell your agent, and up your coverage? Stricter
building codes in many
areas have also added to the
cost of rebuilding.
Because these problem are
accentuated over time, they
could be a particular threat
to retirees and those nearing
retirement, Baheti says, if
they have lived in the same
house for many years. So, what can you do about it?
Start by checking your policy to see exactly how much
coverage you have. Then, call your agent. Be up front
about any improvements that might not be reflected in
your current policy, and ask the agent for help to determine
whether you are adequately insured. Don’t
assume that’s like asking the fox to guard the henhouse.
After all, pushing up your premium too much might
send you searching for a better deal elsewhere. Your
agent may have software to estimate rebuilding costs or
might suggest you talk with a local builder.
You can also take advantage of a new online product
offered by MS/B. Introduced in August, AccuCoverage
gives consumers access to the same up-to-date cost estimates
insurers use. Baheti helped develop the program
after wildfires in California and Arizona in 2003
exposed the scope of the underinsurance problem.
To use the program, you answer a series of questions
about your house—where it’s located, its square
footage, how many stories it has, whether there’s a
basement or garage, what kind of roof it has, what kind
of counters are in the kitchen, what are the walls and
ceiling made of, and what percentage of the floors are
carpeted, hardwood, parquet, marble, slate . . . you get
the idea. It might sound intimidating, but there’s
plenty of online help. It took one of our staffers about
15 minutes to go through the process for his home.
When you’re done, the program instantly provides
an estimate of the cost to rebuild based on cost data for
materials and labor that are updated quarterly for your
zip code. If you need more insurance, get in touch with
your agent. If the higher cost of adequate coverage
stings, consider a higher deductible. Going from $250
to $1,000 can put a significant dent in your premium
Special offer. Using AccuCoverage normally costs
$19.95, but Kiplinger Retirement Report readers get a special
25% discount, bringing the price to $14.95. If
you’re interested, go to http://www.kiplinger.com/links/accucoverage The discount will automaticaly be applied when you check out.
|
|
|
