We May All Benefit from a Hard Lesson

Many of us who were fortunate enough not to have our homes damaged by the recent tornados may be able to benefit from a sad lesson learned by some of those who did face damage. Until they filed insurance claims they were not aware that they were underinsured. They had insured their homes for the purchase contract amount of their homes. Although their homes were very new, the amount to replace them has already far exceeded the amount they paid for their homes. It may be a good idea to have your insurance do an updated evaluation of the replacement cost for your home. We certainly hope we never face another natural disaster in our community, but we should all take advantage of the lesson learned by our neighbors and become financially prepared.