2 out of every 3 homes in America are underinsured

According to a recent survey by Marshall & Swift/Boeckh, the Princeton NJ consulting firm that specializes in estimating construction costs, 2 out of every 3 homeowners don’t have enough insurance.

The latest survey showed the typical homeowner was underinsured by 27%.

Several factors are at work:

• Insurance policies cover less than in the past. In the past five years, the vast majority of insurers have done away with, or radically modified, their guaranteed replacement policies. Whereas once your company would rebuild your home no matter the cost, today most insurers cap how much they pay to 125% or 150% of your policy’s stated coverage amount.

• Construction costs are on the rise. The cost of rebuilding a home has risen about 3% a year on average for the past decade, according to the National Association of Home Builders. Many homeowners haven’t updated their coverage to reflect those costs.

• Homeowners are remodeling like crazy. Americans spent $180 billion last year updating their homes, often boosting the value of their homes in the process.

Make sure you have enough insurance. Contact us today.

Do you know the 8 mistakes people make when buying a homeowners policy?