Home Insurance Daily Digest

One mistake you should avoid is getting under-insured. You should maintain sufficient insurance coverage so that in case of damage, done in whatever way, you will be covered in full. For example the replacement cost of your home is $100,000 and your policy coverage is only $60,000 the insurance company will only pay you $60,000 if and when your home is destroyed completely. You will be personally responsible for the $40,000 budget short. And the worse that can happen if you are under-insured and part of your home was damaged; it is possible that you will only receive partial reimbursement for the repair of the damaged part. The actual amount is dependent on how much under-insured you are.

This entry was posted on Saturday, July 10th, 2010 at 3:21 am and is filed under Laws and Policies. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.