It has been a huge surprise to me to find out that while you can take out life insurance on a person that is some arbitrary amount you cannot do that with property. Say, you inherit your parents house with your siblings, each owner has to insure their own interest in the house. So, if the house had been destroyed, you would have received only the cash payout only for the portion of the house you actually own. Property insurance is not to be used to create a profit. It is designed to restore what you have lost. In April of 2000, my house was hit by a F1 tornado. I called the Vestavia Hills Fire Department and said the house behind me is no longer there. They said, yes we know and help is on the way. The house behind my house, was actually flatted with a tree down the center and I was shocked the house was fixed and not completely rebuilt. Just about everyone in the neighborhood got a new roof. A leaking roof can destroy a house quickly. It was quite obvious that a local insurance agent is an asset. I had been paying less for my long distance insurance. You get what you pay for, sometimes. I did notice, however, the people with local insurance had the help of their agents being there, on foot, in our torn up neighborhood. The agents from the local agencies had more of an interest in the community and the houses insured by local insurance agency’s were restored to a higher quality. My deck was destroyed by a 50 foot oak and my insurance paid for replacing part of the deck and painting it with deck stain. The deck was restored but it was not equal to what it had been before the tornado. Take a look at your homeowners policy and see what it actually covers.
You Get What You Pay For, Sometimes