One of the most important things to know when buying or reviewing your Homeowners Insurance, is understanding the replacement cost of your home. Many homeowners think that home replacement cost is the same as a home’s market value. Your replacement cost will only cover the cost to rebuild your home with similar materials if it is damaged or destroyed. With construction costs being at an all time high, purchasing the right amount of insurance is crucial. When purchasing or reviewing your Homeowners Insurance I would recommend:

• Have your agent complete a current Replacement Cost calculation. You will need to provide some detailed information about your home, including square footage, number of stories, number of bathrooms, type of roof, whether you have custom kitchen and/or bathrooms. Also important to advise of any improvements that would increase the rebuilding costs, such as solar panels.
  
  
• Extended Replacement Cost coverage - Most insurance carriers will offer as an option, at least 25% of additional coverage on the dwelling. This coverage is crucial as it is virtually impossible for even a contractor to know what it would cost to rebuild your home in the event of a loss. Remember that after a regional catastrophe such as a wildfire, costs to rebuild increase.
  
  
• Building Code Upgrade coverage - Most policies will include a 10% limit for Building Code upgrade. If you have an older home, you should consider increasing this limit.

For most of us, our most valuable asset is our home, so it is important to take the time to review and make sure that you have enough coverage in place to repair or rebuild your home.

As an added benefit of your 1st Nor Cal membership, we at Lou Aggetta Insurance will help you review the things that are important to you and provide you with options for reducing risk in your life. If you decide to buy an Auto policy you will receive a $25 Gift Card. If you purchase both Auto and Home you will receive a $50 Gift Card.⁴ We are an independent insurance agent and can provide you with home, auto, life, health, business, and many other types of insurance coverage.