Wells Insurance Blog

The True Cost of Not Having Enough Insurance for Your Home

Written by Wells Insurance | Sep 5, 2025 9:25:08 PM

The True Cost of Not Having Enough Insurance for Your Home

Your home isn’t just where you live—it’s one of your most valuable assets. For many retirees, it represents decades of hard work, savings, and family memories. That’s why protecting it properly matters so much. Unfortunately, too many homeowners find out the hard way that they don’t have enough coverage when disaster strikes. The risks of not enough home insurance can be devastating, both financially and emotionally.

At Wells Insurance, we’ve seen firsthand how coverage gaps can leave families vulnerable. Here’s what you should know about the true cost of being underinsured—and how you can avoid it.

Rebuilding Costs Are Higher Than You Think

Imagine a storm damages your coastal home. You file a claim, only to discover your policy limit doesn’t cover the full cost of rebuilding. Construction prices, labor shortages, and supply chain issues have all driven costs up in recent years. Even being underinsured by 20% can leave you owing tens of thousands of dollars out of pocket.

👉 Related Reading: How to Protect Your Coastal Home from Hurricanes and Flood Damage

Partial Coverage Can Feel Like No Coverage

Many homeowners assume that “some coverage” is enough. But the truth is, if your insurance doesn’t keep pace with the value of your home, you might only receive a fraction of what you need after a loss. This can mean:

  • Delaying repairs because of unexpected costs

  • Draining retirement savings to cover gaps

  • Having to sell or downsize unexpectedly

These outcomes are avoidable with the right guidance.

Natural Disasters Expose Gaps

Here on the North Carolina coast, hurricanes, flooding, and high winds aren’t rare—they’re expected. A standard homeowners policy may not cover everything, especially flood damage or wind-driven rain. Without proper add-on coverage, a single storm can erase years of financial stability.

Bonus material: Check out all of our disaster resources.

The Stress of Being Unprepared

Beyond the dollars and cents, there’s the emotional toll. Finding out you’re underinsured usually happens at the worst possible time—after a loss. The uncertainty of not knowing how you’ll pay for repairs, protect your spouse, or cover living expenses can weigh heavily on you and your family.

How to Avoid the Risks of Not Enough Home Insurance

The good news is, avoiding underinsurance isn’t complicated. Here are some practical steps:

  • Review your policy annually to ensure coverage keeps up with rising costs

  • Understand exclusions like flooding and wind damage

  • Work with a trusted advisor who takes the time to explain what you have—and what you may still need

👉 Resource: How to File a Home or Auto Insurance Claim: A Stress-Free Guide

Wells Insurance: Your Partner in Protection

At Wells Insurance, we don’t just sell policies—we build relationships. We take the time to understand your goals, explain your options clearly, and recommend coverage that protects your home and your peace of mind.

If you’re unsure about your current policy or worried about the risks of not enough home insurance, we invite you to connect with us. Together, we’ll review your coverage and make sure your home—and your future—are fully protected.

Contact Wells Insurance today to schedule a review.

Because the true cost of underinsurance is always higher than the premium.