Study finds most homes underinsured by 25 percent

Study finds most homes underinsured by 25 percent
Close to 70 percent of all homeowners have insufficient insurance coverage to rebuild homes that have been destroyed in a disaster, according to a new Marshall & Swift study of claims records filed in the last three years.
The study examined losses on more than 10,000 homes valued at less than $500,000. The files describe buildings damaged so badly, they are considered a total loss or have to be replaced from the foundation.
According to the study, homeowners don't realize that it typically costs more to replace a home after a major loss, because there are often factors, such as upgrades, add-ons and improvements that were not considered when the homes were first built.
Even though you have guaranteed replacement coverage, any upgrading and renovations you make to your home must be reported and made part of your policy's coverage. Physical improvements such as porches and decks alter the true replacement cost of your home.
In the wake of the recent disasters caused by Hurricane Floyd, many homeowners are well aware of the importance of proper coverage. Contact us today to make sure your policy is ready when the next storm rolls through.

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