What is over and under insurance?

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The major differences between under and over insurance can be summarized as follows: Through under insurance you are insured for less than market value whereas with over insured you are insuring for an amount above market value. Mar 27, 2011

How do you determine the replacement cost of your home?

Home replacement cost is the total amount required to rebuild your home to its original standard. Your dwelling limit must be at least 80% of your home’s rebuild value to be fully covered. Home replacement cost can be calculated by multiplying your area’s average per-foot rebuilding cost by your home’s square footage. 3 days ago

What is the 80/20 rule in homeowners insurance?

The ’80/20 Rule’ Most insurance companies require you to insure your home for a minimum of 80% of the replacement cost. (100% coverage is better, but most insurance companies will pay out a full claim if you have 80% of the replacement cost covered.) Mar 13, 2018