The biggest advantage that most people own is their residence. For the most part, homeowners are aware that their home could be damaged or destroyed from a number of causes. Homes have been demolished by catastrophic floods, fires and winds in most recent years, and because the chances may be possible, almost all property owners buy insurance to protect their home against certain types of loss.
Underinsured homes still appear to be a serious problem in the U.S. There are many homeowners whose homes remain underinsured. Marshall Swift, a company that is dedicated in providing ways to determine the insurance values of residences nationwide, estimates that slightly more than two-thirds of homes in the country are uninsured. While underinsurance is not an issue with minor losses, it is a significant issue when major losses occur.
Despite the fact that most homes are owned under mortgages and mortgage companies require that those properties are insured, does not affect the underinsurance problem we are facing. The primary concern is that enough coverage exists to protect the loan value, so homeowners should be certain that their insurance reflects their property’s full cost of restoring the home. If a home is destroyed and the insurance limit did not cover the property’s full value, then what is not covered has to be handled by the homeowner.
For the most part, an insurance policy decides on the level of coverage that should be carried on a given home. When a policy is renewed annually, coverage is often increased by a set percentage. However, the increase may not stay the same with the economic factors that raise home replacement costs. For example, because of the recent increase of catastrophic events, construction labor costs have increased, as well as repair and rebuilding cost.
It is important to be sure that insurance coverage is adequate. If not, it could result in a homeowner having to spend thousands of dollars on uncovered damage. Homeowners should periodically review the coverage they carry. Changes can be made to be certain that their property is fully protected after a major loss. Make an arrangement with your insurance professional for the proper amount and type of protection you will need.
If you have any questions about your existing policy, are inquiring information about a possible future policy or need further information, please call us at (631) 738-7300 or get a quick quote at www.vrpinsurance.com
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