Why you may not be paying Enough for Home Insurance!
I recently wrote an article for Medium about How many owners of home insurance policies in California are not truly paying enough for homeowners insurance. The truth is that this story needs to get out.
"According to numerous resources, Most or Many home insurance policies just do not have enough Property Coverage. (In insurance lingo this is often known as Coverage A.) According to Insurance Business Magazine: “ fewer than half of homeowners in America would receive enough insurance money to rebuild.” Their article is based on report from the insurance rebuild calculator company: Marshall & Swift/Boeckh. Specifically “60% of homes in the US are undervalued for insurance purposes by an average of 17%.”
These are crazy statistics if true. So why are so many homeowners underinsured?
Well there are numerous reasons and I list five in my article:
1. Consumers wanting a less expensive product. Often this is because people do not understand their policy.
2. Agents pushing these cheaper forms.
3. Demand Surge. Demand surge is not simple to explain. After large scale disasters everything, and I mean everything becomes more expensive to repair.
4, Low Building Valuation. Homes are just not inspected enough.
5. Extended Rebuild Endorsments are usually far too low.
What to Do, What to Do!
We will go through that in another post.
"According to numerous resources, Most or Many home insurance policies just do not have enough Property Coverage. (In insurance lingo this is often known as Coverage A.) According to Insurance Business Magazine: “ fewer than half of homeowners in America would receive enough insurance money to rebuild.” Their article is based on report from the insurance rebuild calculator company: Marshall & Swift/Boeckh. Specifically “60% of homes in the US are undervalued for insurance purposes by an average of 17%.”
These are crazy statistics if true. So why are so many homeowners underinsured?
Well there are numerous reasons and I list five in my article:
1. Consumers wanting a less expensive product. Often this is because people do not understand their policy.
2. Agents pushing these cheaper forms.
3. Demand Surge. Demand surge is not simple to explain. After large scale disasters everything, and I mean everything becomes more expensive to repair.
4, Low Building Valuation. Homes are just not inspected enough.
5. Extended Rebuild Endorsments are usually far too low.
What to Do, What to Do!
We will go through that in another post.
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