How the Housing Market Affects Your Home Coverage

How the Housing Market Affects Your Home Coverage

July 27, 2022
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Are you obsessively checking home prices on your favorite real estate app, even if you aren’t in the market to buy or sell?

You’re not alone. Homeowners across the country are wondering how high interest rates and falling market value will affect their lives–and their homeowners policies.

Here’s the real scoop on what’s going on with your homeowners insurance:

  • Replacement Cost - Homeowners coverage is based on what it would cost to rebuild your home, not buy it.
  • Value Realignment - Many homes have had market value higher than replacement cost value. Yours may be coming back into balance.
  • Home Improvements - Upgrades and additions may have more to do with your homeowners coverage than a market spike or drop.

If you’re not sure whether your home is correctly valued for your coverage, it might be a great time for a quick review so we can explain exactly how we keep you covered.