About half of all US citizens, especially homeowners who have been in their home for more than 4 years, are under-insured by as much as half of the correct amount. Many do not know what their coverages are, and some can not even find their policies. The final responsibility of appropriate coverage is legally on you, the home-owner (or tenant).
Your insurance policy probably includes a penalty for being under-insured. If you are not insured correctly, the aforementioned penalty can be costly when you have a claim.
I have a friend who recently insured his home with another insurer at half of what we estimated its value to be. His choice was primarily based on a lower cost per month. In the case of a loss, this underinsurance will result in this insurer paying approximately half of the repair costs. Additionally, the underinsurance will likely result in non-renewal, which can make a replacement policy very expensive and hard to find.
As insurance professionals we have tools available to quickly estimate your home’s value comfortably within the margins allowed by our insurers. The Merriam Agency is more than happy to review your account in order to ensure proper coverage. In the past 6 months, we have been able to insure some homeowners for the correct (increased) amount without raising their cost $1. Take a look at your policy. If your home is not insured for at least $100 per square foot, red flags should be going up quickly.
The MERRIAM INSURANCE AGENCY is part of an elite group of independent insurance agencies around the United States participating in the Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) “Best Practices” Study Group.