Do I need to have my homeowners policy re-evaluated?

How has the housing market affected your homeowners insurance policy?

When you own a home, it is exciting to see the values go up. In some situations, insurance companies may not think it is necessary to update your homeowners insurance policy just because the Real Estate market is hot. However, with lumber and supply cost increasing the cost to build a home has increased significantly since the pandemic. 

This is exactly why we reached out to our insurance company to see if we would be covered should our house be destroyed. 

We found that we were underinsured. Not only has the market increased, but we did an upgrade in 2019. Based on our update and the market, we are updating our policy for full replacement coverage.

The likelihood of our house being destroyed is pretty low. However, I have seen a few house fires in our town lately and don't want to be that one person. 

There are many reasons insurance companies encourage you to reach out to check on your coverage.

Erie Insurance list 9 Life Changes to Tell your Insurance Company about

1. Getting married or divorced.
2. Having a Baby
3. A Move
4. Remodel or adding to your home
5. Child heading to college
6. Buying a car
7. Starting a business
8. Starting a new job
9. Switching Mortgage or Auto Lenders 
10. Bonus: Property and/or cost to build have significantly increased in your area

For additional information, check out these sites:

NC Department of Insurance

How to Review and Update Your Homeowners Insurance

Replacement Cost vs. Cash Value of Homeowners Insurance

So, do yourself a favor and reach out to your homeowners insurance company. It should only take 15-20 minutes to determine if you need to make a change.

While you're at it, check on your life insurance. If you need a great financial advisor or insurance company in North Carolina, reach out to me and I'll be happy to share my top referral partners.