It pays to check if your home is over-insured in today's market
Property owners, especially those who took out their insurance policies several years ago, should take the trouble to check whether they are not over-insured.
"Many insurance companies," said Bill Rawson of the Rawson Property Group, "routinely add 10% per annum (in some cases even more) to the value of the property and to their clients' monthly payments. In the long run this can ensure that the property becomes seriously over-valued and over-insured."
"Similarly," he said, "it should now be recognized that, with builders operating in a much more competitive environment, the replacement cost of a home today may also be a great deal lower than insurance companies' formulae stipulate.
"No one wants homeowners to start cutting back on vital insurance or under-insuring their homes, but here at the Rawson Property Group we have frequently discovered that quite large sums can be saved on insurance premiums while still maintaining realistic coverage, simply by recognizing the true value of the home and the true cost of replacement in today's market. These sums can then help to pay off the bond at a higher rate, a course of action which we always advocate and which has time and again proved beneficial to so many homeowners and property investors."
Rawson Property Group Press Release