Your home is constantly changing, even if you don’t realize it. From renovations and appliance upgrades to added square footage or rising construction costs, your home’s value can shift over time. What many homeowners don’t realize is how home value affects insurance coverage. If your home’s value changed last year, your insurance policy may need to change too.
How Home Value Affects Insurance Coverage
Homeowners insurance is designed to cover the cost to rebuild your home, not its resale price. When your home’s value increases, rebuilding costs often increase as well. That’s why understanding how home value affects insurance coverage is so important.
If your coverage hasn’t been updated to reflect changes, you could be underinsured. Meaning your policy may not fully cover repairs or rebuilding after a covered loss.
Home Updates That Can Change Your Coverage Needs
Many common home improvements can impact insurance coverage, including:
- Kitchen or bathroom remodels
- New flooring, cabinets, or countertops
- Appliance upgrades
- HVAC system replacements
- Finished basements or attic conversions
- Added square footage or room additions
- New garages, decks, or outdoor living spaces
These upgrades often increase the cost to rebuild your home, which should be reflected in your insurance coverage.
The Risk of Not Updating Your Policy
If your insurance coverage doesn’t match your home’s current value, you may face unexpected out-of-pocket expenses after a claim. Rising labor and material costs only increase this risk, making it more important than ever to understand how home value affects insurance coverage.
A policy review can help ensure your coverage aligns with your home today, not the version of it from years ago.
When Should You Review Your Insurance Coverage?
A good rule of thumb is to review your homeowners insurance policy once a year or anytime you make significant changes to your home. Even without renovations, changes in construction costs alone can impact insurance coverage.
How Hibbs Insurance Can Help
At Hibbs Insurance, we help homeowners understand how home value affects insurance coverage and make sure their policies keep pace with their homes. Our team will review your coverage, discuss recent updates, and help ensure you’re properly protected, without paying for coverage you don’t need.
Final Thoughts
Your home evolves over time. Your insurance should evolve with it.
If your home’s value changed last year, now is the right time to review your policy and understand how home improvements effect insurance coverage.
Contact Hibbs Insurance today to schedule a homeowners insurance review and protect what you’ve built.
