My in-laws learned this the hard way after a total loss fire. Their insurance covered the current value of the house, not the cost to move/replace it in a total loss scenario, so now they have a big mortgage for their new house when the old one was nearly entirely paid off
Absolutely. It is also never a bad idea to have at least 6 months in expenses saved up in cash for emergencies. And another 10 thousand to keep an attorney on retainer.
If your insurance only covers 50% of the property value it is essentially useless.
This is absolutely insane.
Wait until you hear about the deductible… where I am (not earthquake country by any means) the deductible was $80k. I sad pass on that.
My in-laws learned this the hard way after a total loss fire. Their insurance covered the current value of the house, not the cost to move/replace it in a total loss scenario, so now they have a big mortgage for their new house when the old one was nearly entirely paid off
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Yeah I’m sure every home destroyed was worth over a million. That’s just a straw man.
My home insurance in the UK covers the full cost of tearing down and rebuilding if the house is damaged beyond repair. As it bloody should.
That’s why you get AFLAC for the other stuff.
Ah so just purchase more insurance for the things the insurance I already pay for doesn’t cover?
Absolutely. It is also never a bad idea to have at least 6 months in expenses saved up in cash for emergencies. And another 10 thousand to keep an attorney on retainer.