Be Prepared to Pay More for Homeowners Insurance

February 19, 2013

Costs rising on homeowners insuranceHomeowners insurance has been on the rise for a while now, even with depressed home prices. With homes values now slowly rising up again in some markets, it’s natural to assume that insurance prices will rise up proportionately, but that isn’t necessarily the case. Rising homeowners insurance costs are their own beast, and the Equifax Finance Blog shares why the cost to insure doesn’t necessarily parallel market changes in the new article, “

Does Home Value Affect Homeowners Insurance?

Homeowners insurance is tied to the cost to replace or rebuild the same kind and quality home as the one on your exact property, either as replacement cost coverage or actual cost coverage. The difference between selling your home and rebuilding it is depreciation and market value, compared to builder prices. So insurance costs don’t reflect your home value going up or down in the way a real estate agent or tax assessor would.

The reason for the recent rise in insurance costs is because of the increase in prices of building materials, updates to building codes that would require a more expensive rebuild and other related factors. These rises are in addition to the increased coverage you would need as time passes for the more items (like furniture, jewelry, electronics, etc.) that you accumulate.

To learn more about homeowners insurance,

preventing identity theft and more, check in with Equifax!

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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