One of the very devastating and disappointing results of natural disasters and other events that cause substantial home damage is learning too late that your homeowners insurance is not sufficient.

Being underinsured is a huge problem that homeowners insurance agencies see on a daily basis, especially whenever large numbers of homes are being affected by catastrophic events.

Does your policy provide enough coverage based on the current value of your home?

As far as insurance coverage is concerned, there’s more to home value than just its listing value if you offered it for sale today.

Most Homes Don’t Have Enough Homeowners Insurance

Although we all pay for homeowners insurance to protect our dwellings in case the unthinkable happens, industry studies indicate that nearly two-thirds or two out of every three covered homes do not carry enough insurance to repair or rebuild them after catastrophic damage.

This has become exceedingly apparent over the last half decade as millions of homes have been damaged by wildfires, hurricanes, and flooding that resulted in an avalanche of property damage claims to insurance services to get repairs done.

Unfortunately, many homeowners have learned the hard way that the coverage they initially established with their current homeowners policy isn’t enough, leaving them with big repair bills to pay after their homeowners insurance coverage was exhausted.

Key Factor - Rising Reconstruction Costs

According to homeowners insurance agencies in Texas, a key factor in the problem of widespread underinsured homes both here and throughout the country is rising repair and reconstruction costs.

With every year that passes, it costs more to repair or rebuild the same home.

Materials costs go up due to higher demand and increased production costs as do labor costs as construction companies try to keep up with all the repair work.

This affects homes everywhere, regardless of how they become damaged.

Homeowners insurance limitations are reached much more quickly due to these higher costs, meaning there isn’t enough money to pay for all the damage.

Reconstruction Value Not The Same As Sale Value

The biggest mistake that homeowners make when buying insurance is not discussing actual repair costs with their insurance agency or not doing it often enough.

There is a huge difference between the appraised value of your home used as a listing sales price and the cost to rebuild that structure based on current construction and material costs.

The total cost to rebuilt a house back to its original condition without any upgrades is typically much higher than the evaluation or sale value which can be two separate numbers.

For any insurance policy to be protective for catastrophic damage, it must be written based on the cost to repair it, not just the sales price or even a current evaluation.

Talk To A Homeowners Insurance Agent

Losing a home to fire, tornado, or some other extreme event is a terrible blow to any family.

Finding out after the fact that your homeowners insurance won’t provide enough funds to have it repaired or rebuilt would be devastating.

Avoid that risk by discussing your home valuation with an experienced homeowners insurance agent who can skillfully determine the replacement cost of your home and explain it in detail so you get the protection you need.

Plan with your insurance service when to re-evaluate your home’s replacement value over time so you won’t ever be caught without enough property damage protection!

Questions About Homeowners Insurance In College Station Texas?

Jones & Associates Will Make Sure You’re Properly Protected!

Call (979) 599-7532 for More Info!