RealEstateJournal | Surge in Home Prices Leaves Homeowners Underinsured

RealEstateJournal | Surge in Home Prices Leaves Homeowners Underinsured


By M. P. McQueen
From The Wall Street Journal Online

It's the downside of the housing boom: Many homeowners are now significantly underinsured.

Americans have been pouring money into their homes in recent years, adding everything from marble bathrooms to fancy backyard barbecues: Last year alone, spending on improvements like these hit an estimated $155 billion, up 27% from two years earlier. At the same time, the global boom in commodities prices -- lumber, copper piping and other necessities -- as well as rising labor costs has pushed up replacement costs by 7% a year since 2001.