Rich, people don’t understand their insurance. They don’t understand that they may not have replacement value. They don’t understand that they will only be paid for the house and not the land.
We see it everytime there is a disaster, people then discover when the insurance company starts to fight that they have exclusions and terms in their policies. We see it with people with cars, people are stunned when they smash their new car and find out after insurance ‘totals’ it that they still owe $5000.
People equate insurance with the insurance companies will replace it for me or give me the money I ‘paid’ for it, which is rarely the case.
