Social   Social
Logo
Phone 610-993-2058
  • Home
  • Get A Quote
  • Products
  • Client Services
  • Our Companies
  • Claims
  • Our Team
    • About Us
    • SalesTeam
    • Management Team
  • Contact Us

 

Home > Blog > 3 Facts About Upside-Down Properties and Home Insurance
THURSDAY, MAY 14, 2020

3 Facts About Upside-Down Properties and Home Insurance

There are few scenarios in which homebuyers don't expect their home to increase in value over time. The nature of real estate is to trend upward, even if there are dips along the way. But it's important for homeowners to know what will happen when things don't go according to plan. An upside-down property refers to one in which you owe more than the home is technically worth. We'll look at how home insurance factors in and what you should do if you're in this situation.

Know the Costs to Rebuild

The most important thing about upside-down homes is what it would cost to rebuild. In other words, if your home is leveled by a tornado, do you know exactly how much it would cost to rebuild the entire structure from scratch? While it's unusual for homes to be demolished, it's not unusual for homeowners to need to make significant repairs due to serious damage. Unless you're planning to move, you'll need your home insurance to cover the costs — even if those costs exceed the property's assessment value.

Understand Replacement Terms

The replacement costs on your policy refer to how much it would cost to rebuild the home with similar materials in the case of destruction. The actual cash value refers to what you would get if you chose to sell the home at the time of the claim. Your benefits will depend on the plan you select. When you're choosing the amount of coverage you need on an upside-down property, you should be opting for an amount that comes close to the true replacement costs — as opposed to the market value of the property.

Stay On Top of Changes

It's not uncommon for homeowners to have underinsured homes. Some people willingly choose to forego coverage, but many simply aren't aware that they need to update their policies. If your block begins to lose value and your home insurance is based on the market value of your home and not the replacement costs, you could end up losing more than you realize in the case of serious damage.

Talking to a home insurance expert can be a great way to learn more about when to opt for the property's replacement value. And while it may be difficult to opt for the additional coverage, the benefits far outweigh the negatives if you need to file a major claim.

source: www.getitc.com

Posted 3:00 AM

Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019

  • insurance(6)
  • fall home maintenance list(4)
  • condo insurance(2)
  • auto insurance(2)
  • life(2)
  • homeowners(2)
  • life insurance(2)
  • jordan seiken(2)
  • ho-6(2)
  • party(1)
  • drone liability(1)
  • bonds(1)
  • drones(1)
  • a blockage in the sanitary main(1)
  • sewer back-up: aging sewer systems(1)
  • renters insurance(1)
  • combined pipelines(1)
  • tort(1)
  • motorcycles(1)
  • loss assessment(1)
  • nations insurance awareness day(1)
  • personal liability(1)
  • insurance agent(1)
  • dirt bikes(1)
  • broker(1)
  • liability coverage(1)
  • umbrella insurance(1)
  • atb(1)
  • graduation(1)
  • full tort(1)
  • insursance(1)
  • identiy theft(1)
  • umbrella(1)
  • rental car insurance(1)
  • jet skis(1)
  • vendor(1)
  • auto liability(1)
  • condo homeowner(1)
  • wedding(1)
  • limited tort(1)
  • rental car(1)
  • event insurance(1)
  • identity theft insurance(1)
  • contractors(1)
  • drone insurance(1)
  • independent insurance agent(1)
  • condo(1)
  • insurance waiver(1)
  • insurance waiver for rental car(1)
  • tips at keeping my child safe for graduation(1)

View Mobile Version

Raving Fans

Thank you so much for all the time and careful explanation you shared this morning --- You are SO knowledgeable and well spoken!

I have alerted State Farm that I have found a superior company/policy. So, let's proceed with our plan to begin coverage on Monday, July 22!

Many, many thanks again, Julie!

Cynthia Pierce

Read More

Contact Us

  • Travelers Logo
  • Foremost Insurance Group
  • Safeco Logo
  • Chubb Logo
  • Pure Logo
  • Westfield Logo
  • Nationwide Logo
Social   Facebook

Helpful Site Links

Raving Fans Our Story Awards We Give Back BHHS Fox & Roach Accessibility Privacy Policy Terms of Use
Personal Lines Business Lines Signature Client Services Our Mission Careers Refer A Friend Disclaimer Glossary

Latest Blog Updates

Latest Blog Updates
All Posts
Powered by Insurance Website Builder