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PSA - Check your homeowner's coverage


AustinBike
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We're in the middle of a remodel. Took a look at our coverage and realized we were way undercovered.

Talked to our contractor and he said, for planning purposes, assume ~$275 per square foot to rebuild a house.

Insurance companies *generally* have a 20% buffer so that they don't need to change policies every year. In simple terms, if you make a claim, they will generally pay it all out up to 20% over the cost of the policy. So if your house is insured for $500K, if you have to rebuild it, they'd basically cover ~$600K - but check with your company.

The simple formula for me is: square footage * 220. This will give you the approximate bottom number, the minimum amount of coverage.

The issue has less to do with the TravisCAD valuation, it has everything to do with the rising cost of construction materials and labor.

Remember that you only insure your house, not your lot. So if TravisCAD says your home is worth $800K and the lot is worth $300K, then you only need to really think about $500K. But, again, TravisCAD numbers should not be your guide.

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