[drcoastline]

Most homeowners insurance policies have what is known as a coinsurance clause. With the clause being set at 80%. What this means is at the time of a loss the structure needs to be insured for at least 80% of it's Replacement cost So if we have a building with a replacement cost (the cost to rebuild)$100,000.000 the building needs to be insured for at least $80,000.00 to avoid being considered under insured and penalized.

If at the time of the loss the $100,000.00 structure is insured for $50,000.00 only 50% of the structure is insured, so the carrier will pay $50,000.00 less the deductible.

If your agent insures you for 80% coins at the effective date, you have a problem. Insure for 100% (the agent can do an estimator) every two or three years have the estimator redone.

If you keep up with the estimator the current prices shouldn't have an negative effect as you will be within the 20% fluctuation that is permitted.