Tracey Baker

Vice President of CJM Wealth Advisers in Fairfax

Discussion Policy

Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.

Sunday, May 11, 2008; Page F04

How do I know if I have the right homeowner's insurance?

To find out if your homeowner's protection is up to speed, you need to know the following:

Is the dwelling value listed on the policy enough to rebuild your home at today's prices?

If you don't know the cost to rebuild your home, check to be sure your policy does not cap the replacement value. Historically, the majority of homes are underinsured by about 30 percent. Unfortunately, this is usually not discovered until after a large loss.

Homeowner's policies generally come in one of two forms, named peril (HO-3) or all-risks (HO-5). The HO-5 form is the broader coverage that pertains to the contents within the home. Make sure you know what policy form is protecting you. With the HO-3, the peril that caused the loss must be specifically named in the policy, such as fire or lightning. With the HO-5, the peril is automatically covered unless it is specifically excluded.