Posted on 2/1/2018 12:00 AM By Florida Peninsula Insurance Company
With your home being one of the largest investments you will make in your lifetime, it is important your home is properly insured for all its worth. A study conducted by Marshall & Swift, determined nearly two out of every three homes in the United States are underinsured. Upon reviewing your policy, you may find your current policy will only insure a percentage of the replacement value of your home. In the unfortunate event of a total loss, a gap in coverage could lead to a severe financial loss. What you need to know to make the right coverage choices:
Market Value vs Replacement Costs - Know the Difference
Many believe their coverage limits are based on the market value of their home, as opposed to the replacement cost of the structure. When you insure your home based on its market value, you run the risk of having insufficient coverage.
Market values are based on factors such as location, neighboring properties, school zones, and property taxes. However, these factors do not have ...