The homeowners insurance statistics don't lie - a survey by insurance services firm MSB showed that 68 percent of homes are under-insured.
On average, homeowners have 18 percent less coverage than they need.
And, brokers are not accurately assessing their clients' needs.
Another study showed that 59 percent of homeowners are under-insured.
They, on average, have only enough insurance to pay for 78 percent of costs to replace or rebuild their homes.
Home owners who face tragedies are often stunned to find out just what their broker didn't tell them.
Or, worse yet, when what the broker told them wasn't true.
For instance, many Katrina victims reported that their insurance agents told them that they didn't need flood insurance.
They lost everything.
And, in California where wildfires abound, many homeowners find out that they are out to the tune of a quarter million dollars.
So, why are insurance agents pushing less and not more coverage? After all, they get a percentage of the policy amount.
The reason is that insurance agents work on volume rather than price.
They simply don't have the time to make sure your policy meets your needs.
Additionally, the market is hyper competitive and an insurance agent would rather under sell you than have you go down the street to get a $50 lower premium.
You have the right to ask your insurance company to perform an analysis of your home's replacement cost.
This can be based on an inventory of the number and type of rooms, the quality level of the existing construction and the homes special features.
So, knowing these homeowners insurance statistics do your own homework and do it soon before disaster strikes.