When getting home insurance, and at least once a year afterward (more often if significant changes occur), it’s worth working with your agent at Crown Reinas Insurance Agency, which serves clients in California and has offices in Highland Park and Boyle Heights. The goal of a home insurance review is to make sure you have adequate protection.

Here are some common mistakes that may leave you underinsured.

Not Having Adequate Replacement Value Coverage

Limiting your coverage to actual cash value can leave you underprotected, since that amount factors in depreciation and reduces your claim payout. Instead, aim for sufficient replacement-value coverage, which helps ensure you have enough funds to rebuild or replace your home to a condition similar to before the loss.

Not Updating Coverage After Changes

If you complete a remodel or renovation, you’ll likely need additional coverage that accounts for the replacement cost of the new construction.

Not Adjusting for Inflation

The U.S. dollar continues to lose purchasing power due to inflation, and construction labor and materials are becoming more expensive as a result. Increasing your coverage annually can help you keep pace with these rising costs.

Ignoring Flood and Wildfire Risk

Climate change has altered weather patterns and increased the risk of floods and wildfires in some areas. Standard home insurance typically doesn’t cover these events as standard perils, so additional coverage is often needed for adequate protection.

Earthquake Insurance

Standard home insurance policies generally don’t include earthquake coverage. California residents in particular should consider adding a separate earthquake policy.

We’re Ready to Help

These are just a few of the factors to consider when reviewing your home insurance. Your agent can work with you based on your specific circumstances.

Reach out to us at Crown Reinas Insurance Agency for all your home insurance needs, serving clients in California with offices in Highland Park and Boyle Heights.

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