Making sure you have adequate insurance coverage
Investing in your home
Consider the cost of rebuilding your home to its current
state in the event of a total loss
Factors to consider when calculating cost to rebuild
Consider your assets
Add the cost to replace all of your possessions
Real estate value
(house or mortgage) Cost to rebuild
; Local construction costs and square footage
; Brick vs. frame vs. veneer exterior walls
; Shingled vs. tiled roof
; Style of your home—ranch, colonial, contemporary
; Number of rooms
Don’t just think big-ticket items like furniture
and electronics—factor in clothing, sheets,
food, pots and pans, books and more.
What if Nancy Neighbor slips on your sidewalk and
her health insurance company sues you to cover
the cost of her back surgery? Can you afford to
cover the legal fees and a settlement?
Homeowners policies help protect your home and your belongings, but they’re also there to help protect you from liability.
WHAT IS THE first thing you should
think about, and purchase, when buying a
house? If your guess is a moving truck or
boxes, yes, they are necessary, but, more
important, you need home insurance to
protect one of the biggest investments of
your life. How do you calculate how much
protection you need?
The first thing to know is that the market value of your home does not equal the
reconstruction costs necessary to rebuild
the home. Reconstruction costs may be
higher than your home’s market value,
because the costs of residential construction have continued to rise over the past 10
years, driven by rising prices for raw materials and fuel.
Additionally, fewer new homes have
been built in the past several years, which
has slowed the production of building
materials. As a result, the costs of those
materials increase when there is sudden
high demand such as when a natural disaster strikes in a certain region.
For example, if a natural disaster
strikes your neighborhood and your home
is destroyed, the building materials and
labor costs to rebuild your home may cost
more than the home’s market value, in part
due to the sudden demand for building
materials in your neighborhood.
Unfortunately, some people find out
Calculating home insurance coverage
they do not have adequate coverage at the
worst possible time, when they need pro-
tection the most. To ensure you have ade-
able, and identity theft protection is a stan-
dard part of Ameriprise home policies.
More than 300,000 Costco members
are insured with Ameriprise Auto & Home
Insurance. Costco members who have
switched reported saving an average of
$244.05 on their home insurance in the
But a low price without quality service
is no bargain. Ameriprise Auto & Home
Insurance is committed to providing cli-
ents with exceptional customer service.
They’re rated A (excellent) by A.M. Best, a
credit-rating organization, for financial
strength, stability and soundness of oper-
ating performance, and accredited and
rated A+ by the Better Business Bureau.
Ameriprise Auto & Home Insurance was
chosen by Costco because of its dedication
to providing quality protection when its
clients need it most. C ;
Contact Ameriprise Auto & Home
Insurance about a free, no-obligation home
insurance quote. Auto, renter, condo and
umbrella insurance are also available.
Discounts for multiple policies may be
available. Executive members receive addi-
tional benefits, such as roadside assistance
on vehicles covered by the auto policy.
Visit Costco.com and search “protect”
or call;1-888-404-5365;for information on
home insurance through Ameriprise Auto
& Home Insurance. Not available in all
states. Coverage is subject to the provisions,
exclusions and limits of the actual policy.
quate coverage, work with your insurance
company to evaluate the value of your home
and the cost to rebuild it.
Ameriprise Auto & Home Insurance,
Costco’s exclusive provider, insures policy-
holders for reconstruction cost on home poli-
cies, and uses the most up-to-date and
accurate method in the industry for deter-
mining the cost to rebuild a home.
Market value and cost to rebuild are only
two items to consider when determining the
correct amount of insurance you need to
protect your home. Ameriprise Auto &
Home Insurance created a list (below) that
details the factors you will want to consider
to help you select the right coverage for your
Costco members can get home insurance
and condo insurance at a competitive price,
backed by great service. Ameriprise Auto &
Home Insurance provides both—plus so
much more. A variety of discounts are avail-