Housing prices across the country have increased dramatically over the last few years. While Ohio remains more affordable than other parts of the country, home values have gone up significantly. If you’ve lived in your home for a few years, your own property value has certainly gone up — and that means you should probably review your insurance coverage.
1. Consider Rebuilding Costs
The amount of your insurance coverage actually is not as closely tied to your home value as you might think. Most insurance carriers, base the insurance coverage on the cost per square foot that would be required to rebuild your property if you suffered a total loss. Construction costs typically don’t see as much fluctuation in the short-term. However, the last few years have seen supply chain challenges and other concerns increase the cost for construction materials and labor. Rising prices means that more coverage may be needed to fully replace your home in time of total loss.
2. Addressing Coverage Needs
Some policies include inflation guard coverage. This coverage automatically increases the total amount your home is insured for by a designated inflation percentage when your policy renews each year. In times of more dramatic price changes, however, it is best to consult with your insurance agent. They can help you determine what the new cost to rebuild your home would be and adjust your coverage accordingly.
If you need to reevaluate your home insurance coverage, your Pike Mutual agent today. Our knowledgeable agents can help you review your coverage options and help you find a solution that adequately addresses your needs. When you have sufficient coverage, you can have confidence in your financial security.