Will your current insurance policy replace your house?
If you haven’t reviewed your property insurance coverages lately – most likely the answer is NO. With property values rising and construction costs here in Alaska increasing so rapidly, you may find yourself coming up short. In a 2007 survey of our clients property policies we found one-third of them were underinsured by 35% or more.
Remember in insurance we are not concerned with market value - the price you could sell your home for. We care about Replacement Value, what it costs to replace your home in the event of a total loss.
According to the latest report available, the Alaska Department of Labor's September 2006 Construction Costs and Buildings Activity Report residential construction costs increased 21.2% between 2004 and 2006.
If you haven't increased your dwelling limits in the last two years, your home is most likely underinsured by at least 21%. Please call us and we will go through a replacement cost valuation with you so that you have the peace of mind that comes with knowing you can replace your home in the event of a covered loss.
