What’s the 80% rule in home insurance?

Answered by Home Insurance, Car Insurance Expert Shannon on January 28, 2021

My mom keeps telling me that it's important to abide by this rule as a soon-to-be homeowner. What is it?

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Home Insurance, Car Insurance Expert

The 80% rule stipulates that at the time a claim is filed, your home must be insured for at least 80% of its replacement cost. If it isn’t, the insurance company is not required to pay out more than 80% of the claim. This is important to keep in mind if you make any upgrades or additions to your home. Make sure to advise your agent right away so you are properly covered!

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