Is it possible for the housing market to affect my policy? The answer is yes. There are many factors that go into play when determining your premium. A major piece of that is the value of your home. If you bought a home 3 or more years ago, your home value has likely exponentially risen in a very short amount of time.
This housing market has been wild, to say the least. Home values have risen along with build costs. That being said, your home or condo insurance is likely affected. Our owner, Pat Brennen, explains how this affects you and the actions you should take!
2022 Housing Market Affecting Your Insurance Policy – Entrust Insurance, St. Clair Shores
Video Transcription
“What we’re seeing is a couple of different things happening. One is that home values are at record highs right now, the second thing being that build costs are at a very significant increase from what they’ve been over the past several years. So the question is, how does that impact your homeowners or your condo insurance policy? Well, the main coverage or dwelling coverage is there to cover you in the event of a total loss. So we try to assign enough coverage. Whereas if you lose, say there’s a total loss fire, that you have enough money to rebuild, or to buy a house of like, kind, quality and value. So because of homes have increased, that means you may need to carry more insurance because your home is worth more money. Also, if you had to rebuild your home, the cost to rebuild that house has probably gone up, maybe 20, 25%. So to be mindful of what you currently carry on your policy, and how those market conditions affect both the value and the cost to build your house.”
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