Home Values Are Up: Should You Increase Your Home Insurance?

In 2007 and 2008, a significant drop in real estate values occurred throughout the U.S. Many property owners worried about being able to sell their home. Some had underwater loans or other problems with their financing. The economic downturn only added to their problems. Things are changing. Many areas in the United States now have increasing home values. That means there is more equity present. It also means there is more home to insure. If your home's value is on its way up, it may be time to speak to your home insurance agent about your current coverage.  

What Are Recent Home Value Trends in the U.S.? 

According to real estate trend tracking website Zillow, there are some significant changes. For example, the average home value today across the country is $203,400. That is about a 6.5 percent increase in values from 2016 to 2017. Moreso, the company expects values to continue upward, gaining about three percent in the coming year.  

This is just an average. Many areas have double-digit growth. Some areas have less or no growth. You can learn about your home's value by looking at your individual market statistics. Doing so can help you gather insight into the options available to you.  

If not, now is the time to extend your coverage. This does not have to be hard to do. You can speak to a local real estate agent to learn more about your home's value. Then, speak to an area builder. How much would it cost to rebuild the home?  

Finally, work with your home insurance agent. Getting a boost in your home's property coverage is a good thing. It may not cost much out of your pocket. However, in an area with increasing home values, it may be very smart financial move to make. How much is your home worth today?