This is the Ramsey Call of the Day, part of the Ramsey Network.

Joining me today is Ramsey Personality, Dr. John Deloney.

John, one of the things that has happened with this surge in real estate is a surge in real estate values.

A lot of you are sitting on a home that is worth a whole lot more than it was 20 minutes ago,

than it was two years ago, than it was three years ago.

There was a big hurricane, and I can't remember the name of it, that hit Florida and did massive destruction before Katrina hit New Orleans.

So several years back, in other words.

And after that hurricane, State Farm made the decision that they were no longer doing policies that covered the value of the house.

Instead, they're going to do policies, homeowners policies, that they state the value.

And State Farm is the biggest player in the homeowners insurance world, and so everyone followed suit.

And sometimes some of the policies, in other words, you buy a house for 300,000 bucks,

we'll make up a number, and you buy a homeowner's policy for 300,000 bucks to cover the home you just bought.

And it might have an inflation clause on it that the next year it's a little bit more,

and next year it's a little bit more.

But it would be, it would not be unusual for a whole bunch of you listening right now

to have a home that you paid $300 for, that you've got $350,000 for the coverage with those

inflation kickers on them and the thing's worth $550,000.

And it burns down and you can't rebuild it.

You can't build a driveway with $300,000.

Yeah.

Yeah.

And so what I'm telling you is that it is now incumbent upon you because the insurance

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