Is Your Home Underinsured?

August 25, 2022
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Selecting the right level of homeowner’s insurance can be tricky. Too little coverage and you’re left underinsured. Think of your insurance policy as an umbrella. If it’s full of holes, you’re going to be unprotected when a storm hits.

The following is everything you need to know about being underinsured and how to avoid this costly mistake before it’s too late.

7 Ways to Tell if You’re Underinsured

“Underinsured” simply means your policy coverage isn’t sufficient to take care of all costs associated with filing a claim, whether it be for partial damage or total property loss. The end result is you need to make up the difference. This can mean thousands, if not tens of thousands, of dollars.

Here are the top seven ways to tell if you’re underinsured:

1. You selected the minimal level of coverage.
As tempting as it is to opt for savings when signing up for homeowner’s insurance, you may find that a basic plan doesn’t give you the coverage you really need. It’s recommended to insure your home for at least 100% of its worth, even more, if you can afford it.

2. You never completed a home inventory.
Conducting a home inventory is a lot of work, but skipping this important process can lead to severe gaps in coverage should you ever need to replace personal possessions.

3. Your policy doesn’t include insurance riders.
Even with enough replacement coverage, you can still be left underinsured if your policy doesn’t offer protection for expensive belongings or natural disasters. Take the recent flooding in Kentucky, for example. Thousands of homeowners have been left without coverage because they didn’t carry specific flood insurance.

4. It’s been a while since your policy was reviewed.
If you can’t remember the last time you went through your policy, it’s time for a review. Plan on making this a yearly exercise.

5. You’ve recently renovated.
Any improvements to your home should be accounted for in your insurance policy. You’ll want to take into consideration the new cost of rebuilding or replacing contents.

6. Materials costs have increased.
Supply chain issues have led to a dramatic increase in materials and general construction costs. Even without a pandemic, these costs tend to rise annually. Your policy may be outdated if it doesn’t properly take current rebuilding costs into account.

7. You’ve never reached out to a public adjuster.
We suggest making contact with an experienced public adjuster, like SunPoint Public Adjusters, Inc., before you ever need to file a claim. A public adjuster will become your partner in examining your policy coverage, navigating the adjustment process, and disputing/resolving claim payments. It’s always good to know who to call in the event of a catastrophe.

SunPoint Public Adjusters, Inc. Advocates Only for the Insured’s Benefit

SunPoint Public Adjusters, Inc. (“SunPoint”) is the “Gold Standard” of the Public Adjusting industry. We comprehensively review and evaluate your insurance settlement, immediately deploy a team of specialists to assess and quantify your damages, and customize a strategy around your personal recovery to promptly and properly maximize the resolution of your claim.

Our in-house experts and external veteran professionals are experienced in quantifying and negotiating building, personal property, inventory, or other additional coverages. We work solely on your behalf to favorably resolve your claim. Our team ensures your insurance company does not delay, diminish, or deny benefits that are rightfully owed to you. Industry authorities agree that having a public adjuster like SunPoint on your side early in the process expedites and maximizes your recovery.

Policyholders have been benefiting from our knowledge and advocacy for decades. We have handled, managed, and successfully navigated claims ranging from homeowner losses; corporate losses in the hundreds of millions of dollars; disaster losses involving government entities and entire municipalities; agricultural and recall losses, and virtually any type of disaster claim that could be imagined.

Our team of Public Adjusters, building cost consultants, inventory specialists, forensic accountants, and equipment consultants are unmatched in our industry. It is easy to be big. But it takes dedication every day to be the best – we have that dedication. Our goal is aligned with yours. To obtain a free insurance settlement assessment of your specific circumstances and recovery please contact us and strategize your optimal means of recovery.