In most states, Providence Mutual’s Anchor Advantage or Windward Deluxe endorsement can be purchased to increase the standard policy limits to an amount adequate for many customers. You and your independent agent should discuss what high-value items you have in your home, including collectibles like stamps, figurines, sports memorabilia, and firearms, as well as artwork, computer and office equipment, money and securities, custom sports equipment, high-end musical instruments, etc. Your agent can provide details on whether such items should be specifically “scheduled” on your policy for their replacement value.
A home should be insured for the cost to rebuild or replace it if it were totally destroyed. The value shown on your policy reflects the cost of materials, labor, and any upgrades for your geographic area plus the expense to demolish your destroyed home and changes that may be required by current building codes. This value may vary significantly from your home’s real estate market value, purchase price or outstanding mortgage balance which are more market driven.
Make sure to tell your insurance agent about any upgrades or additions you’ve done to your property (finished basement, custom kitchen, etc.) to ensure it is properly valued. Verify your agent also knows about any detached structures on your property (barn, shed, pool house, guest house, fence, etc.) so they can be adequately covered on your policy.
Your Homeowners’ insurance is not a “maintenance” policy. Use your Homeowners’ insurance to cover only large, major losses. Select a higher deductible ($1000, $2500 or $5000) and save more on your Homeowners insurance.
If you are away from your home for an extended period of time, consider installing an inexpensive “freeze alarm” that can notify you if you lose your heat. Available at home improvement and hardware store, or through a professional contractor, these can save your home from the messy disaster of a burst or frozen pipe loss.
Having photographs and an inventory of each room in your home makes it much easier to make and resolve a claim in the event of a covered loss.