You may be asking yourself, "Does my insurance coverage fit my needs?" "Do I have enough coverage to replace my home in the event of a serious loss?" "Is market value and replacement cost value the same?"

As you consider these issues, it is important to understand local real estate values measure the market value or selling price for a home. For insurance purposes, it is important to estimate the amount needed to hire a contractor to repair or rebuild the home to its pre-loss condition. Dwelling replacement cost should not include the value of the land.

Once the estimated cost to replace your home is determined, you should decide how much coverage fits your needs. Consideration should also be given to policy endorsements which may include accidental and sudden discharge of water, dwelling foundation, back-up of sewer and drain, additional coverage for personal articles such as jewelry, fine arts, and collectibles.

Many factors impact your total premium including year the home was built, type of construction, claim history, deductibles, and other credits such as renewal, alarm, and multi-line discounts.

Finally, make sure to review your policy annually with your agent. The most opportune time is when you receive your renewal declarations page listing all your coverages, endorsements, and discounts.