It is rare to hear about overinsurance since the vast majority of insureds are underinsured now; however, overinsurance not only costs the insured additional premiums, it is also a moral hazard and may be illegal. Insureds may be told they must carry policy limits in the amount of the mortgage, but that is not true since the insurance-to-value is different than the retail value of the structure.
This chart is current as of the date I wrote it, but adjusters should be familiar with their state’s rules. I cannot guarantee the accuracy of the list. Because laws and regulations can change without notice, an attorney should be contacted if there are any questions regarding this chart. These materials are provided for informational and educational purposes only and do not constitute legal advice or legal opinions because I am not an attorney.