Ask an Agent
Have a question? We're here to help.
Ask an agent for free

If the value of my home goes up, do I need to increase my coverage?

We bought our home several years ago before the most recent housing boom. Now, like everyone in the country, the home prices in our area are going through the roof! We haven't made any major additions to the home, but values in our area have increased significantly since we purchased. Do we need to increase our home insurance coverage to match the potential sales price of our house? 

Apr 1, 2022 Copely, Ohio

Author profile picture

Ross Martin

Manager, Content Quality

  • Licensed Insurance Agent — Property and Casualty

Ross joined The Zebra as a writer and researcher in 2019. As a licensed insurance agent, he specializes in writing insurance content to help shoppers…

The value of your home increasing is amazing for selling purposes. However, when it comes to insuring a home, insurance carriers value the dwelling (Coverage A) at a replacement cost. This means they will cover the actual amount to rebuild your home, in the event a covered peril leads to a need to repair or rebuild. 

Since the cost to rebuild the home doesn't include the value of land or the amount you could get for the property if you sold it, the replacement cost may well differ from the property value. 

You may still note a rise in home insurance costs this year as the cost to replace your home can rise as a result of materials growing more expensive. For example, the cost of lumber jumped dramatically in 2020 and 2021, adding about $36,000 to the average cost to rebuild a home. Factors like this that are out of your control can impact your insurance rates, even if the rising home prices in your area do not. 

If you have any concerns about your coverage or if you're getting the best rate for your home insurance, it's always great to compare your home policy with other carriers. Good luck and if you have any other questions, don't hesitate to ask. If you're looking for more information on home insurance, see our guide here.

Ask an Agent
Have a question? We're here to help.
Ask an agent for free

Insurance is complicated, but it doesn't have to be.

The Zebra searches all of the top insurance companies, in one place, so you can compare the cost and coverage you need to protect your car, home and other property.

Step 1: Tell us a little about yourself

Choose an insurance product and enter your zip code to get started. No phone number required.

Step 2: Sip your coffee while we find the best quotes

Enter the necessary information and then sit back while we find quotes from 100 top insurance carriers.

Icon Fill Form

Step 3: Compare your quotes

Compare quotes side-by-side to find the right match for you, whether it's home, auto, or more.

Icon Agent

Step 4: Let our agents do the hard work for you

Once you pick your policy, our agents are here to get you over the finish line. Then just relax and enjoy your savings.

Compare auto and home insurance rates and save up to $670 per year!

Location pin icon
No junk mail. No spam calls. Free quotes.

Related Questions

Other people are also asking...

Do car insurance companies share information?

The new insurance company is likely to find out about the accident, but that will come from your driving reports when you buy your policy. The majority of insurance companies request a motor vehicle report (MVR) and a comprehensive loss underwriting exchange (CLUE) report to verify the accuracy of …
Jun 29, 2016 Findlay, OH

If I am leasing a car and die before the end of the lease term, can I buy insurance to cover that?

For this situation I'd actually recommend getting a life insurance policy if this is something you are concerned about. To my knowledge, there is no type of auto insurance coverage that would help with the death of a policyholder.In general, dealing with car insurance when a policyholder dies …
Feb 2, 2019 Cleveland Heights, OH

Will homeowners insurance cover my riding lawn mower that caught on fire?

Yes, you can file a claim with your homeowners insurance but I would see if your lawnmower's warranty is still valid before you look into a claim. If you do decide to file a claim, it would be covered under personal property. Keep in mind that your deductible will apply, which means your insur…
Jul 24, 2019 Wynne, AR

What is the 80% rule in homeowners insurance?

As you stated, your home is covered up to 150% of the dwelling amount so this is not something you should be considered about. However, it is a good example of why it is so important to properly insure your home.