How do I know if I am underinsured at home?

You're likely underinsured if your policy's dwelling coverage limit is less than what it would actually cost to rebuild your home from scratch at today's construction prices. A common sign is if your coverage amount hasn't been updated in several years, since labor and material costs have risen significantly. You can get a rough estimate by multiplying your home's square footage by local construction costs per square foot, which a contractor or insurance agent can help you determine. Also check if your personal property coverage adequately reflects what you own, including furniture, electronics, and valuables. If you've done renovations, added square footage, or acquired expensive items without updating your policy, you're almost certainly underinsured. Ask your insurer about a replacement cost estimator tool to get a clearer picture.