People purchase insurance in order to protect themselves. However, is having insurance truly an assurance that you will be protected at least financial in case of emergency or accident? There has been a wrong assumption in the majority of home owners that just because they have a home insurance they are automatically protected and would be justly compensated in case of loss or damage. In a national survey conducted, almost 60 percent of home owners are gravely underinsured. This means that in case of total loss, they will not be paid the amount necessary for them to rebuild their lost home at an equal or comparative amount. So for every dollar, the insurance provider will only shoulder 80 cents which leaves the remaining 20 cents to be shouldered by the insured. That would translate to 2,000 dollars for a 10,000 dollar home.