Is being 80% insured like being just a little pregnant?

In the mail yesterday was a message from my homeowners insurance company about what is referred to as the 80% to value ratio. The important question is “Do you know what that means?”

Just saying “Insurance” is usually enough to get you ignored all night at social events and just putting your insurance policy next to your bed might be better as a sleep aid than medication. But – this 80% to value thing is really important so listen up.

Your home owners policy requires that you insure your home for at least 80% of it’s value. The idea here is that if you only insured your home for let’s say 40% of it’s value then why should your insurance company pay 100% of your homes value if it burns down?

That makes sense but here is the rub – how do you know if your policy is an 80% to value or not?

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For more information, contact Bill Weaver, 602-381-9900, Focus Benefits Group.

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