Underinsured Homes | Contact R&R Insurance

Do you know if your home is underinsured?

Reconstruction Cost increases in the state of Wisconsin are amongst the highest in the country, ranging from 14.5% to 16.8% year over year. The primary drivers of these large price swings include inflation, supply chain management, labor shortages, and rising fuel costs.

3 out of 5 homes are underinsured by an average of 20% below full Replacement Cost, according to property data aggregator, CoreLogic.

Don't leave the protection of one of your largest assets to just any insurance agency or online quoting platform. At R&R Insurance we know how to properly protect your home while providing cost competitive Personal Insurance options.

We Know. We Are The Knowledge Brokers.

Case Study: An Underinsured Home

The Dwelling Limit on your Homeowners Insurance policy is critical in the event of a serious claim. We'll use the following numbers as an example:

Home Purchase Price: $575,000

Home Insurance Limit: $475,000

Cost to Rebuild in 2022: $625,000

If this home was severely damaged in a catastrophe - fire, tornado, explosion, etc. - it would be considered grossly underinsured.

The insurance company would be responsible for the removal of damaged debris, site preparation, and the process of rebuilding the home from the ground up with the same construction quality and design as the previous home. They will only cover the cost of each these items combined up to the Dwelling Limit.

In this scenario, the Homeowners would be responsible for $150,000 in out-of-pocket expense costs! This could be catastrophic for the average family, especially when their Dwelling Limit could be increased for a nominal overall cost.

What items factor into your Replacement Cost & Dwelling Limit?

Home Characteristics - year built, square footage, home style, finished basements, garages, decks/patios/porches, bedroom & bathroom count, etc.
Quality & Materials - from Builder's Grade to completely Custom, the overall finish of kitchens, bathrooms, flooring, basements, and more
Debris Removal - the often overlooked cost of removing damaged debris after a covered claim is contained within the Dwelling Limit.

Dwelling Limit Extensions and Coverage Options

If a geographical area is damaged by a covered catastrophe, construction materials and labor costs can rise sharply to unexpected levels. R&R Insurance partners with companies that offer coverage options to properly rebuild your home.