Homeowner Insurance

We are often asked to lower the value of an insured’s homeowner’s insurance due to the weak economy however this is often not the correct thing to do. Almost all homeowner policies are based on the REPLACEMENT cost to rebuild your home, NOT the market value or your original cost. Although the economy is down, the cost to REPLACE your home may actually INCREASE.

Failure to properly insure your home may result in a penalty settlement in the case of a less than full policy limit loss. For example, if the replacement cost on your home is $200,000, but you decide to insure it for the market value of $150,000, then you are underinsuring your home by 25% of the rebuild value. If you have a $40,000 fire, the insurance company will pay only 75% of your loss or $30,000 due to your decision to underinsure the rebuild value of your home.

To determine the rebuild value of your home, give us a call and we will prepare a no cost, no obligation building cost estimate.

For more information, call 800-638-8791.