Learn — Home & property
Underinsurance
What underinsurance means on a home or auto policy, how a coverage limit lower than actual replacement cost leaves you exposed, and how to review your limits.
Underinsurance means your coverage limit is lower than what a claim would actually cost. The most common homeowners mistake is insuring for market value instead of rebuild cost.
Rebuild cost is almost always different from what Zillow shows. Review dwelling limits every renewal.