6 Costly Gaps in Your Home Insurance Policy

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Additionally, most insurance companies will over-insure your home, which costs you higher premiums.....BUT, if you need to rebuild your home, they will not give you the full amount of insurance money that you paid for. But, rather, they will pay you the going price of what it costs to rebuild (square footage). And remember, in a claim, the land is not lost, just the house. So don't over-insure.

herbang of NJ 4:10PM October 06, 2010

That's why I buy replacement coverage on my home. It costs more, but it's worth it. I also have sump pump coverage, which is also more money, but worth it.
Many people just buy what's cheap and don't spend time to look at their coverage. Then when they have a loss and it's not covered, they blame the insurance company for being "crooked". Just take time to consider what you need.

Fred of MI 3:21PM September 25, 2010

There is a unique method to avoid surprises: READ the document and jot down questions as you go to discuss with your agent. Too bad Congress didn't do that with another recent insurance issue.

Jill of CA 6:40PM September 17, 2010

No doubt we should make conscious decisions about coverage and risks, but this sounds like it was written by an insurance company.
Nowhere is there any comment about how much adding the suggested coverage would cost. Earthquakes? The cost of coverage is hardly worth considering if there's NEVER been an earthquake where you live.
Flooding? If you live atop a mountain? PLEASE!
While reading this scare tactic, use your brains as to what is WORTH paying extra for. You WILL pay extra.

W. L. Head of NC 9:43AM September 17, 2010

I agree. Many insurance buyers have no clue on what their policies actually cover. In our agency we have developed a coverage checklist that helps our clients discover gaps in their coverage. It's called the Pathway Coverage Checklist

Jack Thomas of OH 11:03PM September 14, 2010