Home Safety

Adequate Home Insurance Coverage

Insurance industry research shows a significant percentage of U.S. homeowners do not have adequate insurance coverage to rebuild their homes should disaster strike.


There are a number of reasons for this, such as changing property values, rising construction costs, unreported improvements and the growing trend of in-home businesses.

It's important to understand the cost to rebuild your home, sometimes called its replacement cost, and how that figure can impact you. If your home is severely damaged or destroyed, the last thing you want to worry about is whether you can afford to rebuild it.

Taking an inventory of your possessions can help assure that you won’t forget when it really matters. Use our Personal Property Inventory (PDF*) to determine the value of your belongings.worksheet

What is Replacement Cost and How does it Affect Me?

Many homeowners incorrectly assume if they insure their home for its estimated market value, assessed value or cost to construct new, they'll have adequate coverage if their home is destroyed. But replacement cost is not the same as these values. Other homeowners may have initially insured their home accurately, but then forgot to notify their agent when they added on to the home or made significant improvements --and such changes often affect a home's replacement cost.

The bottom line is you want to be sure your insurance policy provides the necessary coverage, should disaster strike.

More Information

Contact an American Family Insurance agent, visit our web site www.amfam.com, or call 1-800-MYAMFAM (1-800-692-6326) for more information.

These recommendations were developed using generally accepted safety standards. Compliance with these recommendations is not a guarantee that you will be in conformance with any building code, federal, state or local regulation regarding safety or fire. Compliance with these recommendations does not ensure the absolute safety of your occupation, business or residence. It is the property owner’s duty to warn any tenants or occupants of the property of any safety hazards that may exist.