As property values increase, do you need to increase your homeowners insurance coverage?


As property values increase in the U.S., it’s a good idea to evaluate your homeowners insurance coverage to see if you need added protection. Because building supplies are more expensive now than ever, repairing or rebuilding your home could exceed the coverage amount you have on your property, causing you to pay a lot of money out of your own pocket. You can increase your deductible in order to get cheaper monthly premiums.

Save Money by Comparing Insurance Quotes
Compare Free Insurance Quotes Instantly
ZIP Code must be filled out!
 Secured with SHA-256 Encryption
writter logo
Written by
Digital Growth Manager
reviewer logo
Reviewed by
Farmers CSR for 4 Years
UPDATED: 2022-01-13T16:19:41.867Z
Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
A photo of a dark blue house at sunset.

What You Should Know

  • A shortage of homes for sale and historically low interest rates have created a significant seller's market for real estate in the U.S.
  • You may need to increase your homeowners insurance if you are worried about the cost of supplies and labor when it comes to home repairs
  • Requesting a higher deductible, lowering coverage throughout your property, and shopping around for coverage could help you save money

When you are looking to purchase a home, the hope is that you would be a part of a buyer's market in which houses are plentiful and sellers are willing to negotiate and even compromise on their asking prices.

But an extreme shortage in houses for sale and historically low interest rates have created an intense seller's market throughout the United States. People feel more pressure now than ever before to purchase a home, but with fewer homes available, buyers end up in a competitive bidding war with steep prices.

In addition to homes costing more to purchase, the cost of building supplies and contractors is at an all-time high, making it extremely expensive to complete home repairs.

Because everything in the real estate world is so pricey, you may be wondering whether, as property values increase, you need to increase your homeowners insurance coverage as well.

Should I increase my homeowners insurance as property values increase?

Even though property values throughout the U.S. have increased, this does not necessarily mean you need to automatically increase the homeowners insurance coverage you have on your home.

There are two things you must take into account when deciding whether to increase your homeowners coverage: your home's estimated value and the cost of repairing or replacing your home.

While occasional fluctuations in the housing market are not likely to impact the overall cost of repairing your home, the cost of building supplies has certainly increased, making it more expensive to complete home repairs or renovations.

Your homeowners insurance needs truly come down to whether the shortage of building materials and skilled labor in the world of construction will impact the long-term price of home repairs.

We won't truly know the answer to this question for a while, so it is up to you to make a choice about your homeowners insurance coverage. If you can afford to increase your homeowners coverage, it may be a good idea to do so for added protection.

How can I increase my homeowners insurance without overpaying?

If you think it's a good idea to increase your homeowners insurance but you're worried about how much your premiums might cost, there are a few things you can do to save some money.

First, you can choose a higher deductible on your policy. Though this means you will pay more out-of-pocket if and when your home needs extensive repairs, you will save money in your monthly premiums as a result.

Next, you can decrease additional coverage on other structures on your property. If your true concern is your home, you may have some flexibility in other areas of your homeowners policy.

Last, you can shop around for homeowners insurance from other companies to see if you can get a better deal. If you find that the premiums offered to you by your current company are too expensive, get quotes from competitors to see how much you could save every month.

Be sure to use our free tool below to find and compare homeowners insurance rates that offer the coverage you need at a price you can afford.

Save Money by Comparing Insurance Quotes
Compare Free Insurance Quotes Instantly
ZIP Code must be filled out!
 Secured with SHA-256 Encryption