Your AAA Network

Do I Need Higher Limits on My Homeowners Insurance?

Jodi DeSantis, managing director of insurance sales at AAA Northeast, sheds light on this question.

(Photo: 7romawka7 / iStock / Getty Images Plus)

My home value went up. Do I need higher limits on my homeowners insurance?

A: Homeowners insurance is intended to help you replace your home and possessions, so your limits are based on replacement value, not market value. Facets of market value – a trendy neighborhood, good schools, homebuyer demand – don’t affect what it would cost to rebuild your home as it exists today. Home improvements like an addition or a new kitchen, however, could impact your market and replacement values and would be a reason to raise your limits. Increased demand for home construction in your area can also impact replacement costs because of higher-than-usual labor expenses. Staying in regular communication with a skilled insurance agent is the best way to ensure you have the coverage levels you need.

— Jodi DeSantis, managing director of insurance sales, AAA Northeast

AAA insurance agents can answer any questions you have about homeowners insurance. Learn more at AAA.com/Insurance.

Comments

Leave a Reply

Comments are subject to moderation and may or may not be published at the editor’s discretion. Only comments that are relevant to the article and add value to the Your AAA community will be considered. Comments may be edited for clarity and length.

Your email address will not be published. Required fields are marked *

Enter Your Log In Credentials
Larger version of the image
Send this to a friend