Every homeowner should have adequate insurance coverage for their residence. It's a financial safety net that covers the costs of both catastrophic events and other events that can damage your home and the things in it. However, many homeowners who do have homeowner insurance are underinsured, which can be a huge risk. According to ComfyLiving, most homeowners are underinsured by about 22%, but some are underinsured by as much as 60%. Are you one of the many underinsured homeowners out there? Here are a few easy ways to know.

If You Selected an Insufficient Policy

One way you can tell if you are underinsured is if your policy doesn't cover replacement or rebuilding your home at 100%. Many homeowners go with minimal coverage to save on premiums. Minimum coverage policies may seem “good enough” in most situations, but if there's a total loss event, you won't be able to replace or rebuild your home. It's recommended that you have enough coverage to cover the risks your area poses to your property. For instance, if you live in Florida and have never been in contact with a flood insurance agent, you are undoubtedly underinsured.

If You've Made Some Improvements Recently

If you've made some improvements to your home and didn't consult with your insurance company to alert them to those changes, you're most likely not insured properly for them. As you improve your property and the value goes up, it's important that you adjust your policy to reflect those changes.

If You Haven’t Checked Your Policy in a While

According to the National Insurance Organization, about 66% of homeowners have never once reviewed their homeowner insurance. They've had the same policy in place since they bought their house. Auditing your policy periodically and fully understanding your coverage is vital. You want to know where you stand if there's a covered incident. You also want to make sure that you're updating your policy as you make changes to your home and property.

If You Haven't Spoken to an Agent

There are a lot of signs that you may be underinsured, but there's no better way to get the answers you need than to speak with a homeowner insurance agent. Making sure that you have the coverage necessary provides you and your family with a financial safety net that no one should go without. Get in contact with a flood insurance agent today to get up to date on the coverage you need.

Have you been diligent with your home insurance lately? Take the time to evaluate your house insurance and sit down with an experienced agent that can make some suggestions for improving your coverage. Call us at Evolve Insurance Agency today to get started.