Lessons learned #2 (part 1 of 3): Know your sh*t

I have to admit that I've always considered homeowner's insurance to be one of life's necessary annoyances. I know it's not really giving my hard earned money away - I just wasn't getting something visible or tangible for my hard earned money. I mean, what exactly does peace of mind look like? Well, until you need it, it tends to look like a big black stinking hole - which is the way it looked to me up until December 25th. And since that's the way it looked to me, I never spent much time developing a relationship with it, wooing it, and really getting to know it intimately.

Now, some of you, who shall remain nameless (and who are simultaneously despised and revered), are probably on top of this and have had an intimate affair with your homeowner's insurance for years. You've probably doted on it, caressed it, fawned over every detail, and planned annual rendevous with it. You probably have your agent's number on speed dial. This was not us.

And so it came to pass that when judgement day came, we were surprised to find ourselves somewhat underinsured. The reason for this was twofold. First, the prior owners had added a 500 sq ft addition without getting required permits. This meant that the additional square footage was never added to the public record (tax assessor, or whoeverkeeps records of that stuff) and so while our insurance amount looked reasonable for a 2300 sq ft home, it was a bit shy for a 2800 sq ft home. Secondly, our $100/sf coverage was generous when compared to the cost for new construction at the time we initiated the policy, but came up short by today's standards. Lesson learned: Know your sh*t.