HomeInsurance Policy revisit

[Yashassu]

Should I revisit my home insurance policy when my home rate goes up in these couple of years? Will increased home value raises my premium too if I go make those changes? Please help, What is the norm?

 

[fed up]

As the median prices in your area increase, or you make improvements to your home, you should certainly look at your policy to make sure that you have sufficient coverage to replace your home in the case of a total rebuild. Many policies do not have market value rebuild built in.

 

[adjusterjack]

Should I revisit my home insurance policy when my home rate goes up in these couple of years?

Yes.

But it depends on the amount of rate increases. You'll always get a small percentage increase unless your company has a bad year. That's when you can shop around.

Will increased home value raises my premium too if I go make those changes?

Yes, to some degree. Home insurance is not as volatile as auto insurance so rate changes may be reasonable.

Make sure your policy has an inflation guard where the home replacement cost is adjusted every year. In addition, you and/your agent can figure the cost to rebuild using software.

You can even do it yourself online. One that I prefer for myself is:

House Cost Estimator | Cost to Build a Home

It's comprehensive. You put in all the factors about your home. It adjusts for location and current costs.

 

[marindependent]

You should revisit your home insurance, not because the rates go up, but just to make sure you are getting the coverages that you need and the ones that you wish to pay for.

In addition I find that the more consumers speak with their agent the more they understand where their protection holes exist: such as Flood.

 

[ehall2]

If you have a homeowner policy and you are happy with the company you need to pay the rates increase and continue. We are in a hard market with P & C insurance now and you are going to continue to see more rates increases. Insurance companies don't want any new business now and they are very nervous, just like banks are nervous about making new loans. One of the top three companies in the US told me they were slowing down new business and for me not to quote any homeowner policies with them and to hold on, because this was going to be a tuff year. Some companies won't consider insuring a home if the roof is 10 years old. And if you live in Florida, God help you. Companies are going into receivership and non renewing homeowner policies. This problem is because of inflation and reinsurance. Some companies non renewing and going into receivership is because their reinsurance is up for renewal and they can't get reinsurance or the price is going up. Companies based their rates on repair cost last year and now inflation is killing them. Hold on, this isn't going to get any better anytime soon.