Is Your Home Under Insured?
Is your home under insured?
More than 60% of U.S. homes are under insured by an average of 25%, according to Marshall & Swift/Boeckh. In some cases, as much as 73% of an agency’s book of homeowners business may be under insured by an average of 35%, according to MS/B. The problem isn’t limited to homes either—75% of commercial buildings could be under insured by an average of 40%.
Many consumers confuse Market Value with Replacement Cost. Market Value is what the home is actually worth. Replacement Cost on the other hand is what it would actually cost to replace the home if there were a total loss. While many areas have seen home values decrease resulting in a lower Market Value, the cost of labor and building materials continue to drive up the Replacement Cost of homes.
Give us a call and we can run your home’s details through one of our Replacement Cost Estimators for free to see if your home is adaquately insured.