Have you noticed that your Homeowner’s Policy requires more insurance than your home is worth?

If you have – you’re not alone.

Recently, I purchased a home – when I ran the replacement value software, I noticed that the Insurance value is $40,000 more than I paid for the house!

Due to regulations, building codes and the like – it is more expensive to re-build a home than to make one new. However, with the plunge in home prices… it has now caused this phenomina to occur.

If you see this on your policy – you can call me and I can run a replacement cost estimator on your policy to verify the results.

Meantime – I am personally concerned over the potential for some insurance fraud, think about it… what will people upside down in their homes do when they realize that it is worth more burnt down?