Tip of the Month: Homeowner’s Insurance

Everyone should remember to review and update their homeowners insurance policy annually. Typically, most insurance policies update their coverage amount by about 4% every year. Even in a normal year, that will barely factor in local cost increases in materials and construction. With the recent run-up in home values in our area, if you haven’t update the amount of the replacement value of your home with your insurance, it’s imperative you do this now. In the PNW we have seen a 40% increase in home values over the last 2 years. Yes, the market has dropped this year, but not nearly by 40%. Also, make sure your policy has what is called an Extended Cost Replacing policy. This will cover you for 125% of your policy coverage. Please don’t avoid investigating your coverage. If you have any questions on the value of your home, give me a call and we can discuss a current replacement cost of your home.