A very serious but common error is assuming that your Coverage A limit (which applies to the physical structure of your dwelling: roof, walls, ceilings, floors, stairs, decks, built-in cabinets and book cases, fireplaces, window seats, wainscoting, etc.) will always be sufficient to totally rebuild your home after a total loss when you plan on using materials of like kind and quality as the original. But if any of the following are true, that would likely not be the case.

• Your Coverage A amount hasn’t changed in years. If so, inflation hasn’t been kind to you. The cost of labor, materials, construction permits, inspections, and other related costs have risen over those years, and your Coverage A amount has not kept pace. A $200,000 limit may have been sufficient 10 years ago, but is not likely to be now. Contact us at the number below for help determining the appropriate coverage amount.


• You live in an area prone to hurricanes, tornadoes, or wildfires. After a widespread event, the cost of building supplies, labor, and other items skyrockets, and you end up paying much, much more than you would have under normal circumstances.


• You have added a room and/or deck or have done a major renovation to your home. Wow. You really increased the value of your home – and it likely went way beyond your current Coverage A amount.


• Your house is made with excellent quality materials and/or architectural features that require considerable craftsmanship to create, e.g., custom fireplaces, art tiles, built-in hardwood bookcases, cabinets, and window seats. These types of items and the skill it takes to create them generally become more expensive over time.

Your policy’s Coverage A amount is not at least 80% of the amount it would take to rebuild your house to its current state. Your policy includes an “Insurance to Value” clause that would reduce the amount of your claim payment based on the amount by which you are under insured. Learn more here. Contact us at the number below for help determining the appropriate coverage amount.

What to Do Now

Call us to work with an Electric Insurance Risk Coach to help ensure you have the coverage you need. Our Risk Coaches are licensed insurance professionals who are glad to help you navigate the often-perplexing world of insurance coverage. Call us at 800.227.2757, Monday through Friday, from 8:00 a.m. to 8:00 p.m. ET.

Product, service, program, credit, and discount availability and limits vary by state. The information provided on this site is provided for informational purposes only and is not a full explanation of products, services, or coverage. For more information, please contact Electric Insurance Company at 800.227.2757. If there are discrepancies between the information on this site and the policy, the terms in the policy apply.

Electric Insurance Company Risk Coaches help you assess your current coverages and exposure to risk based on the information you provide during your discussion with them. The services provided are for informational purposes only and do not create a professional or fiduciary relationship. Incomplete information or a change in your circumstances after your meeting may affect coverage requirements or recommendations.