California’s massive wildfires over the past year have highlighted that many residents were underinsured. According to the latest figures, nearly 80% of the homes affected by the wildfires were underinsured – of which 60% were severely underinsured. A few factors include:
- Insurance buyers wrongly equate insurance limits to the selling price of their home.
- Building code upgrades add to the cost of a home – as much as 35% to 50%.
- In California, building costs have increased by 30% to 35% following a disaster.
- Insurance companyY programs that estimate replacement costs are inaccurate “nine times out of 10.”
If you have not looked at your homeowner’s insurance policy in the last three years chances are you are not adequately insured. Maybe it is time to review your policy with your agent.
Tidbits from Tom