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Insurance

Home Insurance

Can I be overinsured on my home owner’s policy?

Yes, if you insured the replacement cost of your house to match what you paid for the house, you are most likely overinsured, since the price of your house included the price of the physical land beneath your house. Since your land does not incur any damage, you need to insure your house for the cost to rebuild the same size and type of house that you originally purchased, minus the land. The property appraiser that you used to buy the house will be able to give you an exact figure for the land, given today’s real estate market rates in your area.



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