According to Property Casualty 360, a recent study done by Marshall & Swift/Boeckh almost 60% of United States homeowners are under insured with only enough insurance to pay for 78% of replacement costs. The article by Property Casualty went over some mistakes that homeowners make when it comes to their policies. Have you made any of these mistakes?
1) Have your remodeled you home recently? Remodeling your home adds to the property value which is almost always good. But did you report the higher property value to your insurance company? If not, you are under insured for the amount of your remodel.
2) Insuring for the mortgage value instead of the actual value of the home. If you aren’t insured for the actual value of the home you won’t have enough money to rebuild…unless you have a very large savings account.
3) Not having flood insurance if you live near any body of water or flood zone. The basic homeowners policy does not cover flood. You need to add this type of coverage on separately.
Read more about “The 5 most common homeowners insurance shortcomings: Are your clients covered?” at Property Casualty 360’s website.
Property Casualty 360. “The 5 most common homeowners insurance shortcomings: Are your clients covered?”. August 12, 2014. http://www.propertycasualty360.com/2014/08/12/the-5-most-common-homeowners-insurance-shortcoming?eNL=53ea3644150ba0d07ab6f7f9&utm_source=PC360NewsFlash&utm_medium=eNL&utm_campaign=PC360_eNLs&t=personal-insurance-business&_LID=158470131&page=6