You need to be aware of what any Columbia SC homeowners insurance policy is protecting before you sign for any particular policy or coverage.

Columbia SC homeowners insurance can be a complicated topic, so it is always important that you research policies thoroughly before buying coverage on the most expensive purchase of your life.

Are you like most Columbia SC homeowners when it comes to their homeowners insurance? We buy our policy and stuff it away, never thinking about it again until something happens and we need to file a claim? As our renewal notices come, we may take note of the increases, reluctantly writing out a check for yet another year of protection.

Automatically assuming that your Columbia SC homeowners insurance coverage is sufficient year after year may be a given, but it can also cost you in ways you may not have considered. Let's look at some reasons why you just might want to pull out your Columbia SC homeowners insurance policy today for a fresh review.

Columbia SC Homeowners Insurance – What Changed?

Your Home Value

After several years of sharp retreats, home values are on the rise again. For many homeowners, the strong home values of years past may take many more years to reach again, but if you bought your home within the past year, you may be in for a pleasant surprise or a rude awakening.

That rude awakening can hit you if you were to file a claim following a total loss. For example, when you purchased your Columbia SC homeowners insurance, you paid $375,000 for your home, a steal in your neighborhood. To replace your home today, you might pay more than $475,000, a difference of $100,000. Your home may not have been properly valued in the first place and with the recent increases in the Columbia SC area home values, it may be worth a lot more than you think.

Market Value, Replacement Costs

Market values change, therefore it can be difficult for Columbia SC area homeowners to know what their residences are worth from month to month. Basing your insurance coverage on market value is not the best option, rather you want insurance that is based on its replacement cost.

Replacement cost is preferred because it allows you to rebuild a home at its current location with comparable construction materials that were used in the home that you lost. You aren't at the mercy of ever-changing home values. Instead, your home is replaced whether home values advance or decline.

Many insurance companies insure your home for replacement cost rather than current value, knowing full well that prices may vary a great deal more than the cost to replace, should tragedy strike.

The Inflation Guard Option

You have another option when it comes to your Columbia SC homeowners insurance: asking your agent to automatically include an inflation guard that adjusts your coverage to reflect changes in the cost of construction.

An inflation guard can be especially helpful if your home needs to be rebuilt and the building codes have been upgraded. Normally, you would have to pay extra to upgrade your home, but with an inflation guard in place so-called "ordinance" or "law" coverage would help close that gap.

If you're not sure whether your coverage is adequate for your needs, contact your insurance agent to discuss your situation. You may also want to shop around for insurance elsewhere, giving you the opportunity to compare prices and coverage options with competing insurers.

For more articles and tips on Columbia SC homeowners insurance, check out our Columbia SC Insurance section under Columbia SC Real Estate Categories to your right.

Columbia SC homeowners insurance can be expensive, but not if you go about shopping for your insurance the right way. Kim Lankford, contributing editor with Kiplinger’s Personal Finance Magazine has 5 important tips on shopping for and keeping your homeowners insurance.

Questions about Columbia SC homeowners insurance? Contact us or use the comment box to ask. We’d love to hear from you.

Columbia SC homeowners insurance is not something you can just set and forget. Life changes could demand changes and tweaks to your insurance from time to time. You should discuss possible needs for updating or changing your policy, but here are a few tips to consider:

Updating Your Columbia SC Homeowners Insurance Coverage

Personal property coverage, or contents coverage, for a homeowners policy is a default percentage of the dwelling limit (known as Coverage A) on your declarations page. This compares to the appraised value or market value of your home. In this volatile real estate market, you may need to adjust this coverage before you have a claim. Otherwise, instead of saving money, you may find yourself with a claim that your policy does not cover.

The worst time to learn your Columbia SC homeowners insurance isn’t sufficient is at the time of claim. It’s not your agent’s responsibility to make sure you read your policy. It’s your responsibility.

To avoid these problems, discuss with your agent the dwelling value and its replacement cost. If you have renovated your kitchen or bathrooms, make sure you talk to your agent about the value you invested in these upgrades, and hold on to all receipts associated with the renovation.

Appraising Your Belongings

If you own a condo, co-op, or townhouse, your policy is usually dependent on the estimated value of your possessions. But even if you do not fall into those categories, it is a good idea to keep an updated and accurate list of your belongings for insurance purposes.

Certain valuables such as jewelry, furs, electronics, and silverware should be scheduled on your policy, depending on their value. This way they will be covered while you are away from home or if they are lost, stolen, or misplaced. In order to be reimbursed, you will have to prove their value by way of a receipt or an appraisal. Check with your agent for the insurance company’s requirements at the time of a loss.

Computers, Electronics and Other Gadgets

We all want the latest and greatest in electronics and gadgets, but these desires can be costly. You’ll need to be sure you’ve added these things to your Columbia SC homeowners insurance policy if you want to be assured they are covered. Some carriers no longer cover the loss of smartphones or tablets.

Most homeowners insurance policies cover new possessions you may acquire; however, it is recommended that you keep all receipts, photos, and/or video of large and expensive items in a safe place, preferably online via cloud computing. Insurance companies don’t write blank checks, and they will require you to substantiate any large purchases you claim.

When reviewing your insurance portfolio, consider what could result in a true financial hardship for you and your family. Then discuss with your agent how insurance can accommodate and alleviate that hardship. Be realistic and reasonable. Always keep in mind that if you are trying to avoid any out-of-pocket costs by submitting a claim, next year you’ll probably be looking at higher premiums on your Columbia SC homeowners insurance.