Is it better to be over insured or underinsured?

Is it better to be over insured or underinsured?

If you underinsure your home and suffer a devastating loss — flood, fire, theft — then you risk not being able to return to the lifestyle you’ve worked hard to achieve. Yet if you overinsure, you’re throwing money away every year on unnecessarily high premiums.

Is there such thing as over insured?

Yes, you can be overinsured with too much life insurance. This occurs when your policy amount outweighs your financial obligations minus your assets.

What happens if I am over insured?

Many insurers will have a clause in their policy that relates to over-insurance: “if you over-insure, we will not pay you more than it costs us to rebuild, repair, or replace. Nov 26, 2019