1. After 2003 incident, didn’t policy limits change to account for current costs? Companies are insuring for only 150-170 SF, which is builders cost for hundred not 1 home.
Many insurers still under-insure to keep rates low and competetive. They are willing to deal with the issue on a case by case basis when there is a big loss. Not that they make it easy all the time.As stated in the article they put the customer in a bind between wanting the house back quickly and fighting for the rest of the money . Most losses are small so the question doesn’t come up. In place of actual coverage, most offer or automatically put a rider increasing the limits of coverage but the terms for recouping this money are different.
