PSA - Check your homeowner's ins + improvements

[simpsongal]

After 10+ years w/the same insurer I discovered our homeowner's policy was wrong.  Not sure why it changed at some point, but apparently there was a system change that might have messed it up.  The info didn't align w/the county records, we're short bathrooms, a basement, square footage, and there's no record of our new roof from 2012.  The basement omission is especially funny since we worked w/them on a potential basement claim a few years ago.  I suspect we'll end up paying more, but I'm glad to have it correct/covered.  

Just another PSA - one of my big tasks this year is to assemble receipts for all the renovations we've done over 10 years.  We've spent a lot (probably $300K-350K?), and if we ever sell this house, we'll need those records to offset capital gains on the sale of the house.

[Pom]

All of this: so true. I sold a house last year that I bought in 1991 and although I lived there until I was married, we moved 8 times in 15 years and tracking down the docs/receipts for taxes and capital gains was my nightmare the last month and a half. Get a folder and keep all your paperwork in one place!

Thanks for the reminder, I need to contact our insurance company about our newly completed main bath (finally done Saturday!) and new pole barn.

[flygirl]

This is a good PSA- I changed carriers a year ago and while my previous insurance company had been giving nominal increases to our home value, it was way below what it should have been even with the 125% benefit they offered. So while we ended up paying about the same (we paid less on car) we actually have appropriate coverage for the value of our house. I can’t imagine something happening and trying to rebuild just to have the insurer say “you’re out of money” and my house isn’t fully done. It’s a very good idea to check your coverage on your house and vehicles occasionally!

[ssmjlm]

Yes, DH already called them and asked about adding the pool and they're going to do a review once the pool and landscaping, etc are done.

[imojoebunny]

Very true. Sometimes they change things without pointing it out. I have some friends who accidentally let their umbrella policy lapse, and are now facing a big lawsuit. They still have limited coverage with homeowners, but it is a huge worry, and one that could have been much less of one, if they had noticed that that ~$300 dropped of their bill. Breaks my heart to see them go through this.

[k3am]

Feb 13, 2023 10:13:40 GMT -5 simpsongal said:

Just another PSA - one of my big tasks this year is to assemble receipts for all the renovations we've done over 10 years.  We've spent a lot (probably $300K-350K?), and if we ever sell this house, we'll need those records to offset capital gains on the sale of the house.

When we bought our house, the sellers gave us a list of improvements - generally vague, just 2004 - Kitchen renovation. 

I started a similar spreadsheet with a little more detail, that includes date, item, vendor, and amount. It's come in incredibly helpful for needing to look stuff up. Our sump pumps went out, and for the life of me, I couldn't remember who had done them, and off to the trusty spreadsheet for the answer. Having the time frame is helpful since I don't have to sift through all transactions to find record of it. 

It's also sad to see we've dumped so much money into this house and still have a long way to go. 

[Deleted]

I recommend making sure your dwelling coverage is adequate for current rebuild cost. And that your policy has "guaranteed dwelling replacement cost" coverage or the maximum "extended dwelling replacement cost" coverage available (usually 25% or 50% or 100%). Guaranteed is the best, unlimited, but not all carriers offer it.

[red]

Feb 13, 2023 11:59:06 GMT -5 flygirl said:

This is a good PSA- I changed carriers a year ago and while my previous insurance company had been giving nominal increases to our home value, it was way below what it should have been even with the 125% benefit they offered. So while we ended up paying about the same (we paid less on car) we actually have appropriate coverage for the value of our house. I can’t imagine something happening and trying to rebuild just to have the insurer say “you’re out of money” and my house isn’t fully done. It’s a very good idea to check your coverage on your house and vehicles occasionally!

One of our neighbors had a total loss house fire and the market here has gone bananas since they bought. To rebuild is like 200k more than they were insured for. Truly awful.

[carrotsmakemefat]

Also - make sure you have enough insurance on the current value of your home, not the value when you bought it

[niq]

Mar 11, 2023 16:53:59 GMT -5 carrotsmakemefat said:

Also - make sure you have enough insurance on the current value of your home, not the value when you bought it

I came in to say this or something like it -- if you've been in your home a while, it's possible that construction costs have increased a *lot* and the insurance policy might not be keeping up. It's worth calling to make sure you have enough insurance in case of a major or total loss.