The housing market is seen to be the most precarious of markets these days. And you would often think that your insurance company would have your best interest in mind. However, often-times insurance companies lower the dwelling value of your home to have cheaper rates. They are never going to sell your home, just insure it. So do they know the real worth of your home?
Dwelling coverage is part of your homeowner’s insurance policy, which helps pay for the repair or rebuilding of the physical structure of your home if damaged by an insured peril. Occasionally, insurance companies will lower the ‘value’ of your home, so they are insuring less and of course the rates are cheaper. By reducing the cost to save you money in the case of a loss, you may have a challenge getting the fair amount to replace your home, which in turn is a hefty loss of money.
Insurance companies insure your home based on the sum of money it would cost to rebuild your home, not what the real estate market estimates as it’s worth. If the companies lower the dwelling rate, it leaves the homeowner not to enjoy many of the upgrades that they currently do, such as granite counter tops, hardwood floors, maple or cherry cabinets, etc.
Proper dwelling coverage is one very tricky but important aspect of your home insurance that many homeowners might overlook.
Why using a brokerage is a better option for you?
Insurance brokerages differ in that they have the expertise on the actual cost of your home instead of a less educated estimate that the insurance companies would give you. Since brokerages are offering closer relationships with the client, we’re able to see first-hand the entire claims process from start to finish, so we know the fine details of the value of your home as it related to the cost at the time of a claim. This professional relationship means that your home is getting a thorough review to ensure that your entire property and everything in it is covered. Let us give you the honesty you deserve when knowing the real value of your home. Contact Bedrock to speak with one of our brokers today!