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Rebuilding costs

How named storms matter to property insurance


Late summer is the peak time for hurricane season. And as if on cue, there’s a few storms brewing out in the Atlantic. It’s too early to tell if they will impact Florida, but it is not too early to prepare as if they are.

Review our hurricane season insurance checklist. First on the list is probably the most important: Make certain to have enough coverage to completely rebuild your home in the event it is severely damaged or destroyed. This means sufficient insurance protection to rebuild your home and replace all its contents.

Don’t confuse the real estate value of your home with its insurance cost. Typically, the older your home the bigger the gap between what it costs to insure it, which is the rebuilding costs, and what you would get if you sold it.

The value of understanding appraised value, market value & insurance value

If you matched your property’s insured value to today’s real estate value, you will be underinsured. If you matched your insured value to real estate value before the housing bubble burst, you would have been overinsured. Yes, it’s really that simple. And yet…..people are confused by the difference between appraised value, insured value and real estate value. The wider the gap between those three numbers the greater the confusion. So, let’s start at the beginning.

Code ready with Building Ordinance & Law coverage

What is Building Ordinance or Law coverage – and do I need it? A Connecticut transplant asked that question last week as he was about to close on a newly-built home in Florida. He was looking over his homeowners insurance policy and wanted to understand the terminology. After complimenting him on taking the time to actually read through the policy (which everyone should do), we talked about this coverage which pays for the increased repair costs to meet building codes in force at the time of construction.