If you purchased homeowner’s insurance in California years ago, but have not checked the current value of your home compared to your insurance policy, it may be time to do update this. You will want to make sure that the latest value of your home and your insurance policy coverage are matching, especially if the value of your home has gone up significantly in a small amount of time. Your coverage may not match the correct value of your house, so be sure to check this at least once a year. Your local homeowner’s insurance provider can typically help with this process.
Tips for Estimating Home Value for Insurance:
Check the Rebuilding Amount Needed
While many banks want you to get the homeowner’s insurance policy to cover the amount of your mortgage, this may not necessarily cover the same amount as what it would cost to rebuild your home if needed.
Increase Your Policy If You Remodeled
If you made big improvements to your house, you should talk to your home insurance provider to make sure the value is covered. It is likely that the additions and upgrades you made to the house would probably not be covered by your current policy, so you may need to update it to accommodate this change.
Check Market Value of Your Home
The market value of your house and the cost to rebuild may not be the same. Check with your insurance provider to make sure you are covered for the correct amount, not necessarily market value.
If you are unsure if the value of your home has increased or if your updates are substantial enough to update your policy, you should consider reviewing your coverage soon. We recommend speaking to a local homeowner’s insurance expert in California to discuss what is the best option for updating your policy. We have local offices in Los Angeles and Long Beach to better serve you. Contact us today at 877-945-7233.