Under Insurance May Cost Your Past Clients

All though home prices are not appreciating the way they had for 5-6 years, many of your previous clients may not realize they are under-insured. In an article written by M.P. McQueen of the Wall Street Journal, 58% of homes are underinsured. That means if a disaster or fire destroys the home, the insurance policy may not fully rebuild the home.

Many homeowner policies are not based on guaranteed replacement value, but instead on a term called iextended replacement valuei which offers up to 20% of the insured amount. This means if the home is insured at $200,000, not including the land and rebuilding costs are $240,000, the home owners would not have enough to cover the full replacement. For some homeowners who have not looked carefully at their policy, or who have made substantial improvements without notifying the insurer, they are most likely under-insured.

This is a good opportunity for you to present your past clients with information that can help them avoid catastrophe. In the article they provide three questions a homeowner should ask their insurer:

Do I have enough insurance to be able to rebuild my home as it is, and replace my personal possessions? How much am I covered for liability for damage or bodily injury to others? Am I adequately covered for the costs of additional living expenses if my home is damaged and I have to live somewhere else?

Minnesota REALTORS® EDUCATION EXTRAVAGANZA

Education Extravaganza in Rochester

September 13th
1/2 day class on Forms and Contract Law Issues n this course has been approved for 3.75 hours of CE.
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Education Extravaganza in Maple Grove.

September 22nd
This is a full day class with Forms and Contract Law Issues (3.75 Hrs. CE) in the morning session and Demographics (3.75 hrs CE Approval Pending) in the afternoon.
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CRS 204 Course

October 5th & 6th
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Having Trouble Receiving Minnesota REALTOR® Information?

Please check the National Association of REALTORS® Database System (known as NRDS) to make certain your contact information is correct.

Using the Internet, go to www.realtors.org click on "GO TO NRDS NOW". Log in with your username and password, (if you need assistance call the NRDS HOTLINE 800-868-3225) then click "Connect to NRDS." Enter your name and state, when your information comes up, scroll down and you will be able to update or change your address, email, phone numbers, etc.

If you have difficulty, please do not hesitate to call the NRDS Hotline at 800-868-3225.