Underinsured homes on the rise
The events of the California wildfires had many homeowners discover that even with their expensive home insurance policies they were still quite underinsured. Almost 90% of those affected by the California Wildfires discovered the hard way that they were underinsured with some even shelling out hundreds of thousands of dollars just to get their houses back into habitable status. This emphasizes the need for extensive understanding of the different types of insurance that are now necessary for homeowners due to increasing construction costs and inflation. The security of home insurance and any other form of insurance should not lull people and industry experts into complacency which has devastating results. As with the case of the California wildfires and the aftermath of Hurricane Katrina, many providers/carriers are thinking twice about home insurance policies they have issued even cancelling and opting not to renew them even for very loyal customers.