Underinsured Homes Due to Low Market Value
Paul Woodward
In the recent years there has been a significant change in the average cost of a home purchase. Home prices have been declining for over two years and consumers are able to buy homes at a significantly lower rate than they previously could.
When insuring a home it is crucial that the home is insured to the amount that it would cost to rebuild the home. The actual purchase price should not be taken into consideration whatsoever. The amount of coverage needed on homeowners insurance policy should be calculated exclusively based upon the amount of cost associated with building a home.
When there is a total loss of a home due to fire, the home will need to be completely rebuilt. The insurance company will only be able to provide the amount of coverage listed on a policy. Homeowners will not have the opportunity to cash out the policy and purchase a different home. Many homeowners are not aware that they will not be able to cash out and request a lower amount of coverage.
Due to the low value of homes and the currently low purchase prices, many homes are significantly underinsured. When working with an agent, homeowners should make sure that the coverage listed on the policy is at least the going rate for home construction.
Many homes are selling in the northern California area for approximately or less per square foot. The average cost in this area to rebuild a home is 0 per square foot. Although consumers may be able to purchase a 2000 square foot home for 0,000 it is advised that the home is insured to approximately 0.000.
It is important for consumers to speak with a licensed insurance agent to ensure that the coverage listed on their homeowner insurance policy is going to be enough to rebuild their home in the event of a total loss.
Paul Woodward
Bains & Woodward Insurance
Tow Truck Insurance
Commercial Truck Insurance
homebuildandrenobuddy.com G’day everyone, Well we are well and truly underway with our next project which is Lot 3 (#12) Wentworth Street. As you can see the framers have been in and stood all the wall frames and roof trusses and it is now ready to have the roof installed. Again you will note that I have used the blue/green pine which is termite Treated and I think is crucial in protecting yourself. I also use a termite barrier called Kordaon that goes underneath the frames and then gets worked into the brick course later as extra protection. I simply look at these expenses as insurance and they are really just one off expenses and pretty cheap insurance. Anyway I hope you enjoy the look at the frame stage of the house and look forward to showing you the next stage. Cheers, your buddy, Dion.
Video Rating: 0 / 5
