I've been a personal insurance agent for over a decade. You don't insure for selling value. It's insured for rebuild. So, yes, speak with your insurance company about keeping up on rebuild cost, you are still paying your mortgage in a loss, but insurance is paying for rebuild, debris removal, fire department charges, ordinance or law, personal property coverage and a place for you to rent until your house is rebuilt. Insurance is NOT designed for you to profit from a loss, which is what Dave is expecting, but only to get you back to the position you were in just before the loss. Dave is NOT a licensed agent. While I appreciate him, insurance does not insure based on value of the property, but on cost to rebuild like kind and quality in YOUR zip code.
amyjt
Home policies are usually ‘replacement cost’
policies with a stated limit. Then you can purchase an ‘extended limit’, usually of 20% or so. This is the REBUILDING COST and has nothing to do with the value of the home.
lonwoock
Years ago I met a gentleman on a service call. We spoke about different topics but somehow we got to this topic.He was almost to retirement age and his house was payed off. His house burnt down in a fire. Apparently the house was underinsured for rebuilding the house. He had to take out a mortgage to rebuild as it was. I felt so bad for him to have this happen especially when he was so close to retirement. He advised me to recheck my policy and up it if needed(which I did). I now call my insurance company every year to verify coverage. Please take the time to review your situation.
fernandoguzman
Property value jump doesn't equal reconstruction cost.
Remember, if your house burns down, you still own the property. The dwelling coverage is for the rebuild
ICantSpellDawg
The insurance covers the REBUILD cost, not the resale value of the house, cos selling the house included the land its sitting on
johndone
Insurance coverage should be on rebuild costs including current codes requirements and contents replacement. This can differ from sales value, which factors in land cost and location. i.e. the same exact house in two adjacent counties can have the same rebuild cost, but the one in the swanky neighborhood would sell for more.
lynnebucher
This is so important! Thanks for sharing this valuable information. I will call my insurance carrier tomorrow!
marilynw.ramirez
Called and went through my insurance coverage on my house. Glad I did as the changes we made gave us better coverage at same cost.
danmacgowan
Thank you Dave, we got lucky and bought our house for $245k as a foreclosure a few years ago (in CA) and it is worth $770k now. I never though of looking at insurance. I am doing this Monday!
vchafab
This is huge - It's called Dwelling Coverage and the replacement value have easily increased 30% over the past two years in most major cities. I increased my dwelling coverage by 30% and my monthly premium increased by less than 10%. It's worth it.
Dsoltr
I think the hurricane was Andrew. I own a home, outright, but current events, have prevented insurance affordability, and alot of other things.
We are living on an edge, and God's good humor.
eltonron
Well, the IMPORTANT thing need to know what rebuilding costs are and base your policy on that.
lrlforfun
Most informative video in a long time!
rtw
Thank you! I just called and increased my coverage by $200k and added a $1 million umbrella policy for less than $25 per month! Very reasonable.
deborahpruyne
Replacement coverage is the way to go. I have a client with a shower pan leak and the insurance company covered a whole new bathroom because of the damages from the shower leak. I was amazed I asked what kind of insurance do you have and then they explained it was replacement coverage.
joetristen
Oh my! I am so glad you brought this to my attention! Thank you. Thank you!
cswan
Two things to consider, what is the replacement value of your home and contents at today’s prices, and what is the value of the land your house sits on, because the land will still be there.
HamiltonRb
The replacement cost is usually lower from current ‘sales price’ because the land has a large portion of value.
miked
In Texas, our home owner's policy has language that includes coverage for "full repair and/or full replacement costs" (less deductible, of course). This coverage clause automatically protects us if/when home prices and/or building materials prices go up so that we don't have to try and figure out our home's new value each year and have the policy re-written accordingly. So the better advice is to simply be sure your policy includes "replacement value" coverage and to shop around and compare insurance policy costs & coverages at least every few years to be sure you are getting the most protection at the best price.
stampedeenterprisesllc
Dam I fall in to the type that just gets the insurance, never look back into it and just continue paying it. Glad I came upon this video. Thank you!
