Homes Underinsured After Increase in Home Values

The value of homes in the United States, including Tulsa and surrounding areas in Oklahoma, has increased significantly since 2000. This is due to a number of factors, including low interest rates, rising incomes, and a growing population. As a result, many homeowners are underinsured.

Underinsurance occurs when the amount of insurance coverage a homeowner has is less than the replacement cost of their home. This can leave homeowners financially devastated in the event of a loss.

There are a number of reasons why Oklahoma homeowners may be underinsured. Some homeowners may not realize that the value of their home has increased. Others may choose to save money on their insurance premiums by purchasing less coverage. And still others may simply forget to update their coverage when their home is remodeled or improved.

Whatever the reason, underinsurance is a serious problem. If your home is underinsured and it is damaged or destroyed, you may not be able to rebuild it. You may also have to pay out of pocket for repairs or even move into a new home.

There are a number of things you can do to make sure that your home is adequately insured. First, you should get an estimate of the replacement cost of your home. This is the amount it would cost to rebuild your home from the ground up, using like-new materials and labor.

Once you know the replacement cost of your home, you can purchase enough insurance coverage to protect yourself financially. You should also make sure to review your coverage periodically, especially if you make any major changes to your home.

By taking these steps, you can help to ensure that your home is adequately insured and that you are financially protected in the event of a loss.

Here are some additional tips for homeowners to help avoid underinsurance:

• Review your insurance policy annually. Home prices can fluctuate, so it's important to make sure your coverage is still adequate.

• Insure for the replacement cost of your home. This is the cost to rebuild your home from the ground up, using current materials and labor.

• If needed, consider purchasing additional coverage, such as extended dwelling coverage or flood insurance. This can help protect you from losses that are not covered by your standard homeowners policy.

• Talk to your insurance agent about your specific needs. They can help you determine the right amount of coverage for your home and budget.

As a Broker-Associate, Jason Holt is a full-service real estate agent with Chinowth & Cohen REALTORS in Tulsa, Oklahoma. Jason is dedicated to buyers and sellers of residential, ranch, and land listings in Tulsa, Muskogee, McIntosh, Wagoner, and surrounding Oklahoma counties. He is also passionate about helping all first responders and military members navigate the real estate process. If you're looking for a REALTOR you can trust to help you through any real estate transaction, contact Jason at 918.995.0534.