THURSDAY, APRIL 20, 2023
Homeowners insurance provides essential coverage for your property. Your homeowners insurance can help pay for repairs or replacements if your home is damaged or destroyed by a covered loss. Without it, you could face costly out-of-pocket expenses that could make it difficult or impossible for you to make your mortgage payments.
Despite the importance of proper coverage, 59% of American homes are underinsured, according to CBS News. On average, homeowners only have enough coverage to replace 78% of the costs to repair or rebuild their homes.
The agents at Suburban General Insurance Agency in Fair Lawn, New Jersey, can help you evaluate your homeowners insurance needs. Contact us today for more information.
Why Are So Many Homes Underinsured?
Insurance to value refers to how much of your house’s rebuild cost your insurance company would pay if it was destroyed by a covered peril. If your house isn’t insured to 100% of its total replacement cost, it is underinsured, meaning your insurance company won’t cover the total rebuild cost. 
There are numerous reasons why your home may not be insured to its proper value. For example, recent trends have increased the cost to rebuild and repair houses across the United States, including the following:
Additionally, many homeowners fail to update their homeowners insurance policies after making home improvements. This can result in underinsured houses.
Is My Home Insured to Value?
Taking the time to review your coverage now can save you from costly out-of-pocket expenses down the road. Consider the following guidelines to help ensure your home is insured to the proper value:
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Give your insurance agent accurate, detailed information about your home.
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Regularly review your homeowners insurance policy with your agent.
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Report home improvements or remodels to your insurance agent.
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Close coverage gaps to ensure your home is covered at 100% of its value.
Contact Us for More Information
Don’t let your house go underinsured. For over 40 years, we’ve been helping our clients and customers get the necessary insurance. Contact Suburban General Insurance Agency to learn about homeowners insurance.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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