Does your homeowners' insurance give you enough coverage? If you haven't looked at your policy lately, you could be underinsured. That means your insurance might not cover the full value of every claim you could have. Here are some things to look for.

Underestimated Risk

You might think that you don't need flood coverage on your home insurance policy because you don't live near water. However, the slope of the ground may mean that you're actually in a floodplain if a major storm comes through. You may also have risks from things like sewage backups or failing storm drains.

Other common coverages that aren't included with basic home insurance are wildfire, earthquake, and hurricane protections. While these events are rare, you want to make sure you upgrade your policy to ensure your home is fully insured.

Increased Construction Costs

Depending on your insurance policy, you may insure based on the market value of your home, rebuilding costs, or some other measure. It's important to understand exactly how the coverage on the structure of your home is calculated. You also need to understand if it's a fixed amount until you change your policy or if it adjusts with inflation or the market.

Construction costs from labor, materials, and building code upgrades increase over time. Even if your home insurance policy adjusts for inflation, construction costs sometimes go up faster than general inflation. Be sure to check if your policy provides enough coverage to rebuild your home in today's market.

Total Value of Your Personal Property

Even if you only make a big-ticket purchase every few years, think about how much you actually have in your home. This includes your appliances, furniture, electronics, clothing, jewelry, dishes, and everything else between your walls.

If you've never taken an inventory of your belongings, it's very easy to underestimate how much you actually spent on them. This could lead to you selecting a personal property coverage limit that's too low if you aren't careful.

Ignoring Special Limits and Deductibles

Certain items often have separate limits or deductibles. You might only get $1,000 towards your electronics regardless of whether your personal property limit is higher. Certain disasters, like hurricanes, might have a higher deductible than your normal deductible. Be sure to carefully read each part of your home insurance policy to avoid missing coverage due to these special limits and deductibles.

To learn more about whether you have enough homeowners' insurance coverage, contact a local home insurance provider today.