ARE YOU PLAYING RUSSIAN ROULETTE?

Well of course you aren't, not knowingly anyway!  But take a look at the declarations page of your insurance policy, and you might found out that you are!

I have written about this before, but with last week's fire, I think it is important to revisit the subject.

If you purchased a property in the Smoky Mountains as recently as a year ago, and you haven't updated the replacement cost on your policy, you could be at significant risk if you have a loss.  Some of the owners of last week's fire are going to soon be finding this out the hard way, like I once did.

In 2017, a cabin that I owned burned to the ground.  I had it insured for $210,000 replacement cost, about $200 per square foot. I thought this would be plenty.  It wasn't.  Due to inflationary pressures after the fire, the actual cost to replace it exceeded $330,000.  That extra $120,000 came out of my pocket.  

Just today, I received the insurance renewal on a cabin that I own.  It is currently insured for $347,000 replacement cost, but I know in this market that is too low.  So I had the insurance company increase replacement cost to $400,000.  It was only $90 in extra premium.

If your agent gives you flack about increasing the coverage, find another agent. If you lose your home to a natural disaster, you'd rather be over-insured than under-insured.

Check your policy today, and compare it to what the market is around your property.  Then call your agent and get the policy updated ASAP.  You never know when the next fire will be.