You ever wonder what would happen if your house burned down? Drive by just about any neighborhood these days and you see indications of fire destroyed homes and your reaction is what? Do you say, “ah, man, poor people, hope they had insurance”? Well, of course the answer is YES. Everyone has insurance, but it’s the KIND of insurance you have that separates you from someone who will get their needs met if a tragedy like this happens to you.

Here is the kind of insurance you need, Just to be sure.

1) Dwelling Coverage; this includes:

a) Cost of labor, materials and supplies

b) Architect’s Fees and Permits

c) Contractor overhead and profit

d) Demolition and Debris Removal

c) Other fees and taxes

Make sure your coverage includes these important things:

2) (THIS IS THE MOST IMPORTANT ONE TO ADD) Extended Replacement Cost Coverage (with this coverage they pay anywhere from 120% to 150% over the dwelling coverage limit to repair or replace things that aren’t covered or possible differences in cost of your items vs. replacement costs.

3) Building ordinance or Law coverage (this is coverage that takes into account code differences between the time it was built and now. For example; years ago bedroom window height off the floor could be anything and now the max allowed distance is 44″ (This is in Sacramento county, other places may differ) To change out all the bedroom windows would be a possible additional code upgrade cost.

4) Of course make sure that your personal property coverage is enough to cover the items you want replaced for sure. A good idea is to go around your home and videotape everything, talking and adding descriptions with your voice. This can be a powerful tool to prove you had what you said. Make sure you store this DVD or Tape somewhere safe. It would do no good if it burned or melted with the fire.

5) Most people make changes as they move through their lives. As they change, their needs as well as the stuff they have changes. For example you may have had a 30″ TV, valued at $500, now you have a 70″ TV valued at $2000. Every year you need to update and inform you agent. This is very important. Too many people have been caught with way more valuable stuff, and their insurance doesn’t cover them.