Keep your coverage current

It’s important that you let your agent or Travelers representative know as soon as you make changes to your home. If you install a new deck, remodel your bathroom, add a garage or do any type of home improvement or change, tell your agent or Travelers representative. Updates like these can significantly impact the cost to rebuild your home.

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The Travelers Indemnity Company and its property casualty affiliates. One Tower Square, Hartford, CT 06183

This material is for informational purposes only. All statements herein are subject to the provisions, exclusions and conditions of the applicable policy. For an actual description of all coverages, terms and conditions, refer to the insurance policy. Coverages are subject to individual insureds meeting our underwriting qualifications and to state availability.

© 2012 The Travelers Indemnity Company. All rights reserved. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries. PL-12624 Rev. 9-12

Understanding reconstruction costPROTECTING YOUR MOST VALUABLE ASSET

Travelers has the protection you needTravelers realizes how important it is to have the right insurance protection in place. When you purchase a homeowners policy with Travelers, we’ll take the time to understand your insurance needs. Whether you choose to live in a home that’s 30, 50 or even 100 or more years old, adequate insurance protection can assure, now and tomorrow, that there’s no place like home!

If you don’t think your home could have too little coverage, think again. According to a recent study,* 61 percent of homes are undervalued by an average of 18 percent. For families with a home that costs $300,000 to rebuild, that equates to a shortfall of $54,000! Unfortunately, homeowners with inadequate coverage don’t know until it’s too late.

*Researched by Marshall & Swift/Boeckh, 2012

Market value vs. reconstruction cost

Because the cost to rebuild can be different than what you paid for your home, relying on market value to determine your coverage amount may not be enough to rebuild your home in case of a disaster.

Market value is affected by the local housing market in your area, housing shortages, the number of new homes being built near you, and your location. Market values fluctuate constantly and are not a reliable source for reconstruction costs.

Reconstruction cost is independent of market value, and is affected by factors such as the cost and availability of labor and materials, fuel costs, special characteristics of your home and even how easy it is to access your home site. Because of these factors, the reconstruction cost of your home may be much higher or lower than the current market value.

The reconstruction valuation process

When you buy your policy through your independent agent or Travelers representative, he or she will take the time to collect information about your home’s characteristics, including any custom or vintage features, total living space, building materials and other important details. This information is used to calculate the estimated cost to rebuild a home based on its unique characteristics.

Reconstruction valuations

Some homes require further evaluation to capture additional information about its features. In these situations, Travelers will ask a professional property specialist to come to your property to perform an exterior and, in some cases, an interior reconstruction inspection. This additional level of service helps ensure that your agent or Travelers representative has captured all of the appropriate information about your home. The information we gather can be a critical part of insuring your home to its reconstruction value, especially when you have unique, custom or unusual home features.

What to expect

Once you purchase your homeowners policy, you’re part of the Travelers family. We have the expertise to provide you top notch service.

Should your home be inspected, your agent or Travelers representative will let you know, and a professional property specialist will come to your residence. If it is an exterior inspection, you do not need to be home. A notice or business card will be left on your door to let you know that someone has been there to collect the information they need.

If it is an interior inspection, you’ll also be contacted by phone within a few weeks to schedule a time that is convenient for both you and the property specialist.

After the inspection

Once Travelers has received the inspection report, we’ll determine whether the initial coverage estimate is still appropriate, or if it needs to be increased or decreased. If changes should occur, you will be contacted to go over the details, including how your premium may be affected.

About professional property specialists

All representatives have extensive experience in evaluating property characteristics, and they undergo rigorous training to ensure strict standards for quality and accuracy.