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Local Experts with International Connections

DO I CARRY ENOUGH HOME INSURANCE?

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As home prices soared, we get asked a lot by our clients – the assumption is if price has increased so much for the past 2 years, then insurance coverage should proportionally increase, right?

Not really. Home insurance coverage is mostly based on replacement value – the cost-per-square-foot to rebuild the structure. It is not based on your current home value. While home prices have increased by as much as 20%+ for the past couple of years, construction cost has increased but not as much.

Dig up your policy and review your coverage with your insurance agent🧾 Let your agent know if you have made improvements to the house or added square footage such as an ADU or an additional room. Update your replacement cost to make sure you have adequate coverage. Also, ask if your policy already has an inflation clause built-in. Do not undermine your homeowner’s policy just because you want to save a little money.

A real estate partner will guide you through your home ownership, well beyond the end of your purchase. In Palos Verdes and South Bay, contact your local expert 📱Stephen Haw (310) 503-9886 for invaluable insights. DRE#00808646. Keller Williams Palos Verdes Realty.

Call 310.503.9886 or email skh8828(at)gmail(dotted)com for professional guidance from The Stephen Haw Group, your local experts with international connections.