Don’t pay out of pocket to rebuild your home
When determining if you have adequate insurance coverage for your home, it’s important to understand the subtle differences between home valuation terms.
Marshall & Swift/Boekh (MSB), one of the leading providers of building cost data, reports that nearly two-thirds of Americans underinsure their homes.1 Rebuilding a destroyed home is almost always more expensive than building a comparable new one, considering demolition costs, complexities of reconstruction and required upgrades to meet current local codes and ordinances.
When comparing policies, it’s important to distinguish levels of replacement cost. Many insurance carriers offer basic replacement cost for the exact limit on your policy or extended replacement cost to cover a certain percentage above the policy limit. Nationwide Private Client is one of the few companies that offer unlimited replacement cost to pay whatever it costs to rebuild your home with the same quality and features you have today.
How you may be at risk
If you own a high-value home and are not insured by an affluent or high net worth insurance carrier like Nationwide Private Client, you are likely to be underinsured if you have a total loss. You could be responsible for the additional costs to rebuild your home above the insured amount. Is that a risk you’re willing to take?
How Nationwide Private Client responds
In case of a total loss, we offer unlimited dwelling replacement cost coverage in most states. This means if you have a covered loss, we will repair or replace your home with materials of like kind and quality — even if the expense is more than the amount listed on your policy. We also will pay you to buy or build at another location up to the amount it would cost to repair or replace at your current location. If you want to cash out, we will pay you up to the limit shown on the declarations of your policy or what it would cost to rebuild at that location, whichever is less.
Why it’s important for you
Regardless of your current carrier, it’s important to have a replacement cost valuation done on your home to determine if you are underinsured. Should you incur a total loss, you may have to pay out of pocket to rebuild your home to match equivalent pre-loss construction. If your home is valued over $1 million, standard industry tools used to determine home replacement cost may not adequately reflect its high quality craftsmanship and custom features. In addition to providing our clients risk mitigation education, Nationwide Private Client risk solutions professionals provide eligible new policyholders an in-home survey to evaluate your home’s unique features and help you avoid underinsuring your home.
Nationwide Private Client offers these added benefits:
Why Nationwide Private Client
Nationwide Private Client is dedicated to helping protect the assets and reputations of our clients. Our highly personalized insurance products, services and concierge-style claim management are thoughtfully designed to meet the distinctive needs of affluent individuals and families. We are committed to providing you a superior experience whenever you need assistance.