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  • Writer's pictureCharlotte Burr

Why is my House Insured for Less Than it is Worth?


Have you ever wondered why your home insurance policy covers less than the total value of your property? The answer lies in understanding what exactly you're insuring.


Home insurance is designed to protect the physical structure of your house and its contents from a variety of risks such as fire, theft, vandalism, and natural disasters. However, it doesn't typically cover the value of the land your house sits on. This is because land, unlike structures, is not susceptible to these risks.


When an insurance company is determining how much coverage you need for your home they take into account things like the cost of materials and labor that it would take to rebuild your house on the land that you already own. Although the land itself helps contribute to the overall value of your home, it would be unnecessary to insure the land that your house is built on.


Here at AZ Insurance Team we make sure that your home is properly covered with the very best possible price! Give us a call today! (480)-535-5709


Independent insurance brokerage located in Tempe, AZ. We offer auto insurance, homeowners insurance, life insurance, renters insurance, commercial insurance…

Disclaimer: Coverage will vary on state, insurance company, and type of policy.

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