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Is Your Home Insured to Value in Case of a Loss? (Spring 2007) << Back
 
Two out of three U.S. homes are vastly underinsured according to a recent survey.  Based on these survey results, the average homeowner's policy insures less than three quarters of the projected replacement cost of the home.  Disastrous fires in California and hurricane damage in Louisiana have recently driven this point home as thousands of homeowners were left without enough coverage.
 
The survey, completed by insurance consultant Marshall & Swift/Boeckh in November 2003, found that 64% of U.S. homes are not insured at a high enough level to pay for a complete reconstruction.  Nationwide, the average policy falls 27% short of the projected cost to rebuild the house.  Put in other terms, the owner of a house insured for $200,000 would be $54,000 short of the funds needed to rebuild if the averages held true.
 
With a healthy rise in new worldwide building construction, recent catastrophes and ongoing labor disputes, construction costs and changing building codes are raising the price tag dramatically to rebuild your home.  According to the lumber industry publication, “Random Lengths”, framing materials alone, such as 2-by-4s, rose nearly 40% in 2004 over the previous year.  Without the right insurance coverage, homeowners who experience a loss could see these higher costs coming straight out of their pockets.
 
To combat this effect, homeowners should review policies as they renew each year.  Many of the companies we represent are presently going through an extensive review of each homeowner policy to ensure that each home is properly covered.  We believe that this is of great benefit to you.  If you have any questions regarding the replacement cost of your home, please feel free to contact AHTKY. Your coverage amounts will be reviewed for you by a member of our staff.
   
   
   
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AHTKY Insurance Agency, LLC
1451 W. Artesia Blvd, Suite A, Gardena, California 90248
CA License: 0C46036