Over 50% of homeowners are under-insured



Over half of U.S. homes are underinsured by an average of 20 percent less than full value, according to analytics firm CoreLogic.

Experts recommend conducting a serious review of how much insurance you should carry on your home and possessions, which might also reveal that you are overpaying for too much coverage.

Many higher-value homes near South Florida’s coast are over-insured, for example, because consumers assume that the insured value should be equal to their purchase price, says Jay Neal, president and CEO of the watchdog group, Florida Association for Insurance Reform.

When carrying out a review, first find out how much it would cost to rebuild your home and replace its contents. Start with a call to your agent. Make sure the details they have are accurate and inform them about any major renovations.

Some experts recommend spending a few dollars on a web tool that will generate more accurate replacement cost estimates or hiring an independent appraiser to perform a detailed analysis.

Second, decide how much coverage you want for the contents of your home, and whether to insure contents for actual cash value or replacement value.

Third, purchase flood insurance – even if your county no longer has flood insurance purchase requirements.

Fourth, figure out how large of a hurricane deductible you can handle. Policy premiums can be reduced by taking larger deductibles, but experts say you should have a plan for how you can pay a high deductible if you choose one.

Other tips: Check your Loss of Use Coverage, buy supplemental coverage for expensive items and maintain at least $1 million in liability coverage.

Source: Fort Lauderdale Sun-Sentinel (07/13/18) Hurtibise, Ron

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