It is a startling statistic. One of the reasons behind this is that most homeowners do not increase or update the coverage. They should do this for their homes now and then. Whenever owners improve and remodel their homes they don't usually call their insurance agent so that they can update their coverage.
The surge in the prices of labor, energy and building materials is also a contributor. All these can increase their replacement cost by more than 7 percent since the year 2001. If you were in that home for five years, the insurance of your home might go down to two-thirds of the home's coverage.
There are lots of agents who give quick quotes so they can close a sale. The lack of training that can hamper the accurate assessment of the value of the homes that they insure. They usually rely on over-the-phone interviews. These meetings can provide an estimated amount of coverage for the home of a customer. Homeowners may end up purchasing a low-priced coverage. They create a mistake when they believe that this can replace their home in case there is a full loss.
Doing this is not fair to the industry of insurance. It happens during the rebuilding efforts after the hurricanes. Homeowners may rebuild their homes after a storm damage of that size. They may also find themselves facing the new building code clauses. These did not exist when they created the home.
At the Wellcovered Insurance Group, we take pride in making sure our clients are well protected at prices they can afford. To learn more about how we can help you please contact our agency at (386) 218-4951 or Click Here to request a free quote.