When Premium Is Least Important

Earlier this year, a new family purchased a 30 year old home in my neighborhood. The Movers had just dropped off the owners’ personal property when, very early the next morning, the home caught fire and burned to the ground. All this happened before the new owners even had the opportunity to move in.

Seven months later, investigations have been conducted (as is always the case with fires) and the destroyed house’s debris has been hauled off and cleared from the property. But, reconstruction has yet to begin. Why?

Was precedence given to the home insurance premium over its level of protection for purposes of meeting the DTI ratios for a loan closing?

Didn’t the homeowners insurance provide sufficient Dwelling A reconstruction coverage to rebuild in the present day economic environment?

Are there increased costs from code changes, rising material and labor costs that weren’t protected against?

Have recent developments with Supply & Demand costs impeded securing a contract to rebuild?

All good questions, and just some of the reasons why we advise our clients to “Be Protected, Not Surprised.”