Ohio home ins question

[gibraltar72]

1. I sold

insurance in Mi. I'm guessing the law you are referring to says if you don't carry at least 80% percent of replacement cost. the insurance company can only pay a proportionate amount for a loss. In other words older homes are worth less than it would cost to replace them. An example a home has 100K replacement value. but is worth 50K your coverage is for the value of 50K. You have a fire in kitchen damages only that room. Estimates say repair is 40K insurance only pays half. It is a common insurance law in many states. Hope that helps.