Is your Home Insured for Rebuild Cost or Market Value?

Year to date, 100% of our new clients have had their homes underinsured by about ~30%… Why is this and how did it happen?

Simply put most had their homes insured for their purchase price and were never adjusted. It’s not a secret that since the Covid-19 Pandemic the cost of goods and services have skyrocketed and haven’t really come down followed by inflation.

Another error is in insuring your home for market value because that may not accurately reflect what it would cost to rebuild your home.

Example: Your homes’ purchase/market value is $200,000 and you have it insured as such; however, it will cost $300,000 to rebuild as it was before, at today’s cost/rate.

So, your current insurance policy states that you’re either prepared to come out of pocket approximately 50% of your insured amount to rebuild your home as it is or that you’re looking forward to rebuilding a home that is only 2/3’s the size of your current home.

Not one of our new clients have chosen to remain underinsured…

What will you do with this information?