I spoke with my home insurance agent, and he mentioned that the “total finished living area” does not include finished basements or below-grade finished rooms. I received a lower insurance quote for my new home than I expected, but I’ve realized that this quote seems to be based only on the gross living area square footage. This means it doesn’t account for about 1,800 square feet of my finished basement and in-law suite, which are partially below grade.
When I called the agent to clarify, he assured me that the finished basement is noted in the policy. However, I’ve read online that total finished living area differs from gross living area (GLA). I’m concerned about whether I’m adequately insured based on this distinction.
It’s understandable to be cautious about how your home insurance policy is calculated, especially when it comes to defining “total finished living area.” Typically, the “total finished living area” can vary by insurance company, but many do include both above-grade and below-grade finished spaces, like a finished basement or in-law suite, in their calculations.
It’s great that you reached out to your agent for clarification. If they confirmed that the finished basement is specifically noted in the policy and that they took it into account for coverage, that’s a positive sign. To ensure you’re fully protected, consider asking for the exact details on how they arrived at your coverage amount. You might also want to confirm that your policy limits cover the full value of not just the home itself, but also any additional living spaces and associated contents within those areas.
Additionally, you can review your policy documents carefully to make sure all finished spaces are covered and correspond to your expectations. If you’re still feeling uncertain, don’t hesitate to seek a second opinion from another insurance provider or agent for peace of mind. Ultimately, it’s crucial that you’re comfortable with your coverage and that it adequately protects your investment.