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Arizona Home Owner Insurance and Replacement Cost

Posted on: September 1st, 2010 by admin

Have you ever received a letter in the mail from your mortgage company stating that your house is not insured to replacement cost? It is becoming more common these days as a result of the depressed Arizona real estate market. The whole point of Arizona home owner insurance is to insure your house to its full replacement cost for worse case scenarios so it could be rebuilt similar to the way it was by today’s standards. With Arizona real estate losing so much value over the past couple of years we are now finding many houses selling below what it would cost to build the house. As a result when somebody goes to buy Arizona home owner insurance on their new home they try to insure the house similar to what they paid for it, which unfortunately is not enough. Mortgage companies realize that many people may be inadvertently insuring their homes less than replacement cost. As a result they are becoming even more conservative and aggressive to make sure you are carrying enough insurance.Watch Full Movie Streaming Online and Download

However if you receive a letter in the mail from your mortgage company asking you to increase your Arizona home owner insurance do not assume you are underinsured. When you buy your home owner insurance your Arizona insurance agent calculates the replacement cost on your home based off your homes criteria. The first thing to do is to call your mortgage company and ask for more specifics. If you cannot resolve the issue with them then go back to your Arizona insurance agent. Review everything with them and make sure the calculation is factoring in all improvements to the house since the calculation was last run. Then ask for the calculation or an inspection of the home if one was done to show proof the house is insured to replacement cost.

Just remember you want to make sure your Arizona home is properly protected. If you receive one of these letters don’t panic. A quick call to your mortgage company and Arizona insurance agent will take care of the assumed problem.

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