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Insurance to Value

Your home's probably worth as much as your retirement account. So track your home insurance as often as your 401k.

Know Your Limits
With home improvement a national pastime and constructions costs on the rise, you should check your policy limits once a year to make sure they are adequate. You'll also want to review those limits when you start or finish a home improvement project.

Rebuilding is different than buying
When you review your policy, remember that it usually costs more to rebuild your home than your building is worth, so you can't rely on your home's value to set your insurance limits. Rebuilding costs depend on the price of materials and labor in your area - and in most areas, those costs have been going up.

We can ballpark your coverage needs
Your Safeco agent can estimate the typical cost of rebuilding a home of your size based on the average costs of materials and labor in your area. However, this number won't automatically reflect major upgrades or the cost of replacing unique features. You should discuss those items with our service representatives.

Take an active role in selecting your dwelling coverage limits
Ultimately, it is your responsibility to confirm how much money you will need to rebuild your home and replace your belongings if your home is destroyed. To be sure, ask an expert. For a couple hundred dollars, you can hire a building contractor to give you a more precise estimate of rebuilding costs.

Don't forget your home inventory
To make sure you have enough insurance to replace your belongings, do a thorough home inventory. Compare the value of your belongings to the "contents" limit listed in your policy.

The easiest way to do an inventory is to use a video camera, recording and describing items as you walk through your house. Using a regular camera and Safeco's home inventory checklist works well too. Download the Home Inventory form [PDF] and share the completed list with your Safeco agent to review and make sure your belongings are fully covered. Store your video or photo inventory off-site, so you won't lose it if your house is damaged.