The J.D. Power survey indicates that two thirds of most homes in the United States are underinsured.  Is yours one of them?

I think one of the most confusing parts of home insurance is that most consumers believe their policy limits are based on the real estate value of their home rather than the replacement cost of the physical structure.

Some clients in certain areas are upset with one simple issue; since the value of their home has declined why do they need so much insurance?

Your home insurance policy coverage limit should be for the cost to rebuild your home structure.  With most rebuild situations we have seen that the cost to rebuild is frequently more expensive than building a new home.  A few of the expenses that make this a fact are  the demolition cost of the damaged building, the changes in local building ordinances and regulations and the increased cost of building materials.

Many consumers buy their home insurance policy when they purchase their home, pay their bills  and do not review their policy coverage again.

We recommend that you take a look at your home insurance every two years  to check the limit of coverage on your home or whenever you complete a home renovation project.  At our agency we love when clients call us to review their home insurance coverage.   It is a perfect opportunity to share with them how their policy works and what other coverage options that may want to consider.

The best way to find out the accurate rebuild value of your home is to review this with your local builder.  In addition to checking with a builder you can also check out this website that provides you with an estimate rebuild value for homes.

http://www.myhomesafetyplan.com/copy-of-insurable-value

Hope I got you thinking…………………..how much insurance do I have on my house?