06/27/2022
Have you ever thought about how the insurance you purchased to cover your home several years ago covers your home now? With recent increases in material, labor, cost of goods, etc. that cost to rebuild your house the same way has increased significantly.
If you went with a standard insurance policy your home dwelling coverage likely has you covered at 90%-110% of the purchase price of your home. This means that if you bought your house for $400K several years ago and had a total loss this month you may not be able to rebuild your house the same way. This is because the value of your house has increased exponentially over the last couple of years. It could be worth closer to $500-$600K; however, your standard insurance policy is only covering somewhere around $400,000.
This means to get your house rebuilt after a total loss you could have to pay that additional $200,000 difference out of Y O U R pocket.
When you work directly with me I take a different approach to standard policies. Rather than writing your policy with standard home dwelling coverage, I can add an endorsement for replacement cost coverage at 150% up to a Guaranteed Replacement value. With this endorsement even if you have a total loss to your house in a market that’s shifting you are still covered.
If your head is now spinning with questions about whether or not you are covered then please reach out!
