How to Ensure You Have Adequate Coverage in Your Home Insurance Policy

A standard home insurance policy may check the right boxes on paper, but that doesn’t always mean it’s the right fit for your actual needs. If something were to happen to your home or belongings, the last thing you want to discover is that your coverage falls short.

Here are a few key areas to review if you want to be sure your homeowners insurance is built to handle more than just the basics.

Know What Your Dwelling Coverage Includes

Dwelling coverage is the part of your policy that applies to the structure of your home. It should reflect the cost to rebuild your home—not its market value. Construction and labor costs in Los Angeles can be higher than average, and inflation can also affect rebuilding estimates year over year.

If it’s been a while since you’ve reviewed your dwelling limit, consider getting an updated estimate based on current construction prices in your area.

Don’t Overlook Personal Property and Valuable Items

Personal property coverage applies to the belongings inside your home. Most policies include this, but limits can vary. It’s worth checking whether your coverage is based on actual cash value (which factors in depreciation) or replacement cost (which covers the cost to replace items at today’s prices).

Also, pay close attention to sub-limits for high-value items like jewelry, art or electronics. If your belongings exceed these limits, you may want to schedule items separately for more complete coverage.

Look at Liability and Additional Living Expenses

Personal liability coverage can help if someone is injured on your property or you accidentally cause damage to someone else’s property. Make sure your limits are realistic, especially if you have visitors often, own pets or have assets you’d like to keep insured.

Additional living expenses (or ALE) coverage is another often-overlooked piece. It may assist with the costs of temporary housing and meals if your home becomes uninhabitable due to a covered loss.

Learn More

Choice Insurance Agency can help you review your home insurance policy and make sure the coverage aligns with your property, belongings and current lifestyle. Contact us at our Los Angeles office today to schedule a policy check-in.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.