Do You Have Enough Coverage to Rebuild Your Home?

construction

Imagine how devastating it would be to lose your home in a fire. Now imagine not being able to rebuild it completely because you didn’t have the correct amount of insurance.

Selecting the proper amount of coverage is the single most important decision you can make with your Homeowners policy. Without it, you may not have enough coverage to rebuild after a total loss. This is called “insurance to value.” Below are some explanations and tips to help you make the right choices for your needs — and remember, if you need help, we’re just a phone call away!

What is insurance to value?

Insurance to value is the relationship between the amount of coverage selected (typically listed as “Coverage A” or “Dwelling Coverage” on your policy declarations page) and the amount required to rebuild your home.  Insuring your home for anything less than 100% insurance to value could mean you wouldn’t have enough coverage to replace your home in the event of a total loss

Why is the cost to rebuild different from the market value?

A home’s market value reflects current economic conditions, taxes, school districts, the value of the land and location, and other factors unrelated to construction cost.  The cost to rebuild your home is based only on the cost of materials and labor in your area.  It is important that you insure your home based on its reconstruction cost, NOT its current market value

Why is reconstruction more expensive than new construction?

New-home builders typically build many homes at once, and solicit bids from various sub-contractors to receive the best pricing. Their business model is based on economies of scale. For example, they may purchase 20 bathtubs at once, securing a lower unit cost. These economies of scale don’t exist when building a single home.

How can I make sure I have the correct amount of insurance?

Work with your agent at West Town Insurance Agency to provide detailed information at time of purchase to be sure that you receive a thorough and accurate quote.

Ask us about additional coverage options that may be available.

Review your insurance to value calculation on a regular basis with your agent.

Tell your agent about any changes or improvements that you make to your home.

Agents at West Town Insurance Agency can help you determine your coverage needs. Contact us today at 252-368-4017 to make sure you are properly covered.

 

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Fireworks Safety Tips

For most of us, the Fourth of July is a time to enjoy the company of family and friends, having fun and creating memories – whether at home or away on vacation.

But for some families, the holiday is a nightmare. Homes each year are damaged by wayward fireworks. Thousands of people are injured in accidents.

At West Town Insurance Agency, we want your holiday to be happy, but also safe. So here are some tips to help you protect yourself and your property on the Fourth.

Protecting yourself (and others)

  • Make sure fireworks are legal in your area before buying or using them.
  • To minimize the risk of injury, don’t use consumer fireworks. Attend a public display conducted by professionals in downtown Edenton or elsewhere.
  • If using consumer fireworks, always follow instructions. Do not attempt to re-light “duds” or create homemade fireworks.
  • Avoid buying fireworks that are packaged in brown paper because this is often a sign that the fireworks were made for professional displays and that they could pose a danger to consumers.
  • Never let children handle or light fireworks. Even sparklers, which burn at more than 1,000 degrees, can cause third-degree burns. Kids under the age of 15 account for approximately 40% of fireworks injuries, according to the U.S. Fire Administration.
  • A responsible adult should always be present when children – even teenagers – are around fireworks. More than half of fireworks injuries happen to those younger than 20 years old.
  • Never place any part of your body directly over a fireworks device when lighting the fuse.  Back up to a safe distance immediately after lighting fireworks.
  • Never point or throw fireworks at another person.
  • Never carry fireworks in your pocket or shoot them off in metal or glass containers.

Fireworks Graphic

Source: Graphic courtesy of United States Consumer Product Safety Commission: http://www.cpsc.gov/en/Safety-Education/Safety-Education-Centers/Fireworks/

Protecting your home

  • According to the National Fire Protection Association, the best way to protect your home is to not use fireworks at home.
  • Remember, fireworks can cause grass fires and other types of blazes as well. Make sure you light fireworks in a safe area, away from homes and buildings, as well as other combustible material. Keep a fire extinguisher nearby in case of emergency.
  • Look out for tree limbs or bushes that could catch fire. Trimming vegetation to keep it away from your home is a good idea anyway, but it could save you from a catastrophic fire on the Fourth of July.
  • If your gutters have accumulated leaves, pine needles or other flammable material, clean them before using fireworks near your home.
  • Finally, if you won’t be home on the holiday, ask a neighbor to keep an eye on your house if others in your neighborhood will be using fireworks.

With some common sense and planning, the Fourth of July can be both safe and enjoyable for everyone. Whether you’re staying at home or heading to downtown Edenton, everyone at West Town Insurance Agency hopes you have a wonderful time celebrating our independence!