As tornado season approaches, insurance industry experts are encouraging homeowners to confirm that they have enough insurance to replace their homes should they be destroyed or damaged by severe weather.
“Reliable estimates reveal that between 50 and 70 percent of homeowners do not have sufficient insurance to rebuild their home in the event of a major storm,” said Jerry Johns, president of Southwestern Insurance Information Service.
Some of the issues to consider are increases in construction costs, any renovations or improvements to the home and local building codes, he said.
Consumers often confuse the market value of their home rather than replacement value, Johns explained. If a person does not have adequate insurance a company may pay only a portion of the cost of replacing or repairing damaged items.
Maintaining a current inventory of personal items in your home is highly recommended, Johns said. He suggests keeping a video taped or hand-written inventory that is kept in a safe place away from the home.