Three Ways Your Home May be Underinsured

Mortgage lenders require homeowners to have insurance that protects the bank’s investment in case of a loss. The State of Maryland doesn’t force people to carry insurance, but it’s in your best interest to have protection. The challenges that property owners face is understanding how much and what type of policy they need. At Ramsey Insurance, our professionals are available to help members of the Annapolis, MD; community gets the detailed coverage that can provide thorough security. We’ll work closely with you to avoid common misconceptions that cause some homeowners to be underinsured.

High Rebuilding costs

Many homeowners gauge their replacement costs based on the value of the home. That seems to make logical sense on the surface. But the difference between rebuilding a home at today’s materials and labor costs can be vastly different than the value of a home. Some properties depreciate, and the Real Estate market fluctuates. Today’s home construction costs can run about $150 per square foot and that may not include demolition work and removing damage. Add on the costs of permits, inspections and other hidden items, and you could very well be taking money out of pocket if there is a total loss.   

Natural Disasters and Floods

Many people aren’t aware that floods and other natural disasters are not a standard part of homeowners insurance. In fact, you will likely need to have flood insurance added to your policy. Considering that the Annapolis MD community has Seven River on one side and South River on the other, protection of rising waters may be prudent.

New Building Codes

People that own older homes are commonly tripped up by the expense of changing building and fire codes. Existing homes are not subject to updated safety codes. However, if you suffer damage that requires new construction, that work must meet today’s inspection standards. This is an important aspect to consider when you decide how much coverage to carry. The last thing you want is to pay out of pocket.

Choosing a homeowners policy or upgrading and existing one means making a number of informed chooses. At Ramsey Insurance, we take pride in serving members of the Annapolis, MD community. Our professionals are available to discuss a detailed policy that will provide you with a sense of home security.