Being underinsured simply means your dwelling coverage isn't high enough to reflect the cost of rebuilding your home after a covered loss. While that may not be obvious during the life of the policy, it can become a significant issue when it's time to file a claim.
The Shortfall
If your dwelling limit is lower than what it costs to rebuild your home, you may be responsible for paying the difference yourself. Depending on the size of the loss, that gap can be significant.
That's why accurately calculating your dwelling limit, and reviewing it periodically as rebuilding costs change, is such an important part of homeowners insurance.
The Good News
Underinsurance is often preventable. An accurate rebuilding cost estimate and periodic reviews of your dwelling limit can help ensure your coverage continues to reflect the cost of rebuilding your home.
If it's been a few years since anyone reviewed your dwelling limit, that's reason enough for a coverage review. I'll review your home's rebuilding cost and help determine whether your dwelling limit continues to reflect your home's rebuilding costs.
