Insurance Articles & Information | Health Insurance | Car Insurance

• What You Should Know About Medicare.
• Medicare Supplements - How to Shop For a Policy .
• Understanding Long Term Care Insurance Ratings .

• Homepage
• Resources
• Advertise
• Contact Us
• Sitemap

• Auto Insurance.
• Annuity
• Business Insurance.
• Disability Insurance
• Health Insurance.
• Healthy Family Insurance.
• Home Insurance.
• Medicare Supplemental Insurance.
• Life Insurance.
• Long Term Care Insurance.
• Travel Insurance.

Nearly 70 percent of all homeowners have insufficient insurance coverage to rebuild homes destroyed in a disaster, according to a study of claims records filed in the last three years. The study, conducted by Marshall & Swift, examined files of losses on more than 10,000 homes valued at under $500,000.

"The study was undertaken to better understand the widespread problem of underinsurance and the difference between what a new house costs and what it costs to rebuild a home after an insured total loss," said Pascal Lorthioir, vice president of research and development at Marshall & Swift.

Researchers found 70 percent of homes were consistently undervalued by 25 percent, and only 30 percent were adequately insured or over insured by 5 percent, according to an article in The Insurance Record. Researchers also learned that 60 percent of the claims studied, which were believed to be total losses by carriers, were in fact for partial losses that exceeded policy limits.

The study found that upgrades and renovations, including remodeling, repairs and additions that increase the value of a property, are often left unreported and not made part of the policy’s coverage. Over the course of several years, such physical improvements as porches, decks, kitchen and bathroom enhancements, and finished basements can significantly alter the true replacement cost of a home.