What? You never knew that you should update your policy? You're not alone... most people don't know, but at least now YOU do. Let your friends know, too.
Whether you have owned your home for quite some time, you have recently purchased your home and made some improvements, or are planning to purchase a home and do some immediate or short term renovations, it is important to remember to review your policy coverages every year, or after any renovation.
With a decline in home equity that the real estate market has brought upon us, some homeowners have no choice but to remodel rather than move.
"Buildfax" is a company that maintains a national building database, which also includes permits, and their latest report said that remodeling activity reached a record high in July as consumers put more discretionary income into improving or renovating their homes.T
Residential remodeling activity registered the 21st straight month of year-over-year gains according to The BuildFax Remodeling Index (BFRI) for July. The report goes on to say that consumers are continuing to remodel rather than purchase new homes and do so amid concerns of a recession..
The July index was up 24 percent from one year ago and, at 130.4 is the highest number since the index began in 2004.
The index was up in all regions, including the Northeast, although our area fared much better percentage-wise.
At the same time that building materials sales were up, there are indications that homeowners have not increased their insurance to reflect the changes in value.
Buyers: Remember to contact your insurance company if you are planning to do renovations. Please don't wait for an "event" to happen to find out that you are under-insured for the replacement value of your home. Contact your insurance carrier today.
Source: MorgageNewsDaily.com