The most important thing you can do to safeguard your home and property is to understand that your insurance policy is a contract, and you need to know what’s in it. Your insurance agent or company representative will be able to walk you though it and answer any questions. The bottom line: Don’t put your policy up on a shelf somewhere and let it collect dust! Review your policy every year.

Here are tips to make sure you have enough insurance:

1. For a quick estimate on the amount to rebuild your home – multiply the local building costs per square foot by the total square footage of your house. To find out the building rates in your area, consult your local builders association or a reputable builder. You should also check with your insurance agent or company representative.

2. Factors that will determine the cost to rebuild your home: construction costs, square footage of the structure, type of exterior wall construction-frame, masonry or veneer, the style of the house (ranch, colonial), the number of rooms & bathrooms, the type of roof, attached garages, fireplaces, exterior trim, and other special features like arched windows or unique interior trim.

3. Check the value of your insurance policy against rising local building cost each year. Check with your insurance agent or company representative if they offer an “Inflation Guard Clause.” This automatically adjusts the dwelling limit when you renew your policy to reflect current construction costs in your area. However, you still should keep up with local building costs by checking in periodically with your local builders association.