David,

Good points that homeowners need to realize.  I just completed a post on how a destroyed property affects a familiy even when they are insured properly.  They could still be facing foreclosure if they do not have savings built up due to the fact they need to rent and pay the mortgage until the home is repaired.

That post is here if anyone wants to read it...You Want to Own Your Own Home, But Do You Own it the Right Way? (Part 2)

I do not know all the fine details, but I know that there is a penalty for being "underinsured". Not sure if it lets the underwriter duck the bill, or just part of it. Someone ought to explain that in a blog.

David, I had not given this much thought, but you are right, being under insured can be a huge problem.  The sad thing is that those who are under insured most of the time think that they are getting a break on their insurance.

This is a great reminder.  I followed the link and found your blog to be informative and well written.  I will link you in the future when I do blogging relating to this topic.

David.... I agree with many, that this is a great reminder and often forgotten about. Thanks for the reminder, especially for the average consumer.

David,  Great post. You are so right.  I learned that lesson the hard way..

WONDERFUL information!  It's easy to skip over this piece of the process.  How important it is to work with an insurance professional!!  Hey, speaking of which, are there any out there in the AR community?

Thank you everyone!

I have passed the info on to to clients many times.

Laura - great !