In our latest personal lines insurance news roundup, we lead with a story that should give homeowners some pause. Study: 60% of homes are underinsured
According to analytics firm CoreLogic, about 3-in-5 American homes are insured for an average of 20 percent less than full value, as Consumer Reports noted earlier this year. In the event of a home loss, many insurers will limit your total payout to 120 percent of the value for which your home is insured. If your home has risen in value over the years, 120 percent of its former value may leave you quite disappointed. To ensure your home is comfortably covered, contact a Private Client Solutions Client Executive at 847-307-6100.
The fine print of wind/hail deductibles
More insurers have started to set wind/hail deductibles as a percentage of the home's dwelling value, not a flat-dollar amount. For instance, a one percent wind/hail deductible on a home insured for $600,000 would mean a $6,000 out-of-pocket cost for the home owner in cases of wind and/or hail damage before insurance kicked in. If you have questions about this coverage quirk, call us at 847-307-6100.