California Home Insurance and the Value of Your Home
Economically times are tough and it’s only natural that homeowners are looking for every way possible to save money. However, sometimes when trying to save money it could potentially cost you more in the long term. Don’t assume it’s a good idea to reduce your California home insurance coverage just because your house has lost value on the property market.
Always remember the cost of rebuilding your home after a catastrophe and your home’s market value are not the same thing. Should you place your home on the market the amount it would typically sell for is known as the market value, and of course this includes the land your home is built on. Now take a moment to consider the current cost of rebuilding your house from the bottom up and replacing all your personal possessions. Keep in mind while typical home values have dropped substantially during the last three to five years, in general construction costs have increased.
Even if you are not thinking of reducing your California home insurance coverage, it is a smart idea to check your coverage amount anyway, in case it needs to be increased to ensure adequate protection. Should you be unsure if you have the right amount of insurance contact your insurance agent and request an estimated insurance coverage amount.