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Three-fourths of homeowners may not have enough insurance to fully cover losses after a disaster, study says

Researchers from the University of Colorado at Boulder and the University of Wisconsin-Madison looked at insurance contracts, focusing on nearly 5,000 policyholders who filed claims after the fire.

They found that 74% were underinsured, meaning they weren’t fully covered for total losses. And of that share, 36% of them were severely underinsured, meaning they were covered for less than 75% of their home’s replacement cost.