If there is anything "good" that has come of killer Hurricane's Katrina and Rita, it's that the massive storms have sent millions of home owners scurrying to determine if they have enough insurance coverage should a major catastrophe strike in their neck of the woods.

According to Marshall & Swift, an expert in building costs, nearly six out of every ten homes in Louisiana are underinsured. Similarly, the Los Angeles-based firm says almost 60 percent of all houses in the United States are not valued properly when it comes to insurance coverage -- by a whopping 22 percent, on average!

If that's not enough to cause every owner in America to re-evaluate their policies, nothing will. But it is your responsibility, not your insurance agent's, to remain up-to-date on your coverage.

What's appropriate? You want to be able to completely rebuild your house if it is destroyed, and you'll want to be able to replace everything in it. Also, you'll want to be covered for additional living expenses if you cannot occupy your home as a result of the disaster. And while you're at it, you'll want enough liability coverage to protect yourself should someone be injured while on your property.

Many agents nowadays use a square footage methodology to determine replacement costs, but Marshall& Swift, which has been estimating construction costs for 75 years, says using a total component formula is better. Such a system uses databases to analyze and select detailed parts of a house to assemble estimates in a risk-specific manner.

For $19.95, the company has a web-based program that can calculate a replacement cost estimate based on the unique characteristics of your home, local building codes and local labor and material costs. The estimate is designed to help owners discuss their policy limits and coverage with their agents when reviewing their policies.

Absent that, Marshall & Swift, which provides valuation services to property and casualty insurers, says you should ask yourself these questions to determine if you need to adjust your coverage. If you can answer "yes" to any of them, call your agent pronto:

• Have you made a significant home improvement; added a deck, perhaps, or finished a basement?

• Has it been more than 12 months since your insurer last calculated your replacement cost value? Also, did that calculation focus on any characteristics that make your place unique?

• Have housing values in your area risen or fallen dramatically in recent months?

• Is your house considered historic?

• Does your policy include the value of the land beneath your house? If so, you have too much coverage. Land value should not be included.

• Do you know exactly how much your carrier will pay for specific perils -- fire, flood, wind -- in the event your house is destroyed.

• Do you know what percentage of your home's contents you policy insures? Most policies cover contents based on some percentage of the total replacement cost of the structure. So if you don't have adequate coverage, it could dramatically impact how much is paid for your belongings.

Published: October 5, 2005

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When Lew Sichelman first started writing about housing in 1969, he was the youngest real estate writer in the country. Now, 37 years later, he's one of the oldest -- and most decorated. He has been rated the top housing columnist in the country by the National Association of Realtors as well as by his peers in the National Association of Real Estate Editors. Indeed, NAREE has recognized his work on numerous occasions. One year - due to his advancing age, he can't recall which one - he earned top honors in the annual NAREE Journalism Contest in three out of the four major writing categories. It was the first time one writer has won so many NAREE awards in a single year. Known for his ability to make even the most difficult topics understandable, Sichelman also has been honored by the National Association of Home Builders and the Mortgage Bankers Association. He began providing in-depth coverage of and consumer-oriented information about housing and housing finance at the Washington Daily News, where he was real estate editor. He held that same position for nine more years at the Washington Star, which purchased the News in 1972. The Star, a so-called "writer's newspaper" which also had the misfortune of being an evening paper, was put out of its misery in 1981, and Sichelman, who had begun self-syndicating his column in 1978, decided to become a full-time columnist. Today, his column, "The Housing Scene," is distributed by United Media to newspapers throughout the country. He also is on the staff of National Mortgage News, an independent newspaper which is considered the bible of the mortgage business. And he writes for numerous other publications, including MarketWatch.com, where he answers readers questions once a week, Sports Illustrated (don't ask), RealtyTimes.com, BigBuilder and others. Sichelman is married, the father of five and grandfather of eleven.