Here’s why some policies can come up short
The rising cost of housing across the US has become a fixture in market reports, but less attention has been paid to the increasing expenses tied to rebuilding homes after a loss.
The gap between what insurance policies cover and what reconstruction actually costs is growing – and many homeowners may not be aware of how exposed they are.
Mary Roy, senior underwriting team leader with CRC Group, said a number of homeowners are surprised when they learn their policy doesn’t match the cost of rebuilding. “Some homeowners who have suffered damages have also experienced delays in reconstruction,” Roy said. “Others have found that their coverage does not provide full replacement cost.”
She emphasized that brokers and agents who understand the issue are in a better position to help. “Retail insurance agents who u