We bought a new home 4 years ago, and my ins. company set dwelling limits at about 95% of the price we paid. Now 4 years later, our home value has increased about 30%, and this last month, when our coverage renewed, they bumped the dwelling coverage by that much as well. It increased my premium by over $200 a year. Combined with higher escrow, my bill just went up $80 a month.
I am by no means an insurance guru, but after quick reading, dwelling is supposed to be rebuild cost of house.. so it shouldn't be affected by land value. When a home value increases quickly, it's typically the land/desirability that has gone up, right? It's not like 2x4s and labor have increased 30% in 4 years.
So should I be calling them and asking why it went up so much? No updates or other modifications have been done to the home.
Or am I missing something?
I am by no means an insurance guru, but after quick reading, dwelling is supposed to be rebuild cost of house.. so it shouldn't be affected by land value. When a home value increases quickly, it's typically the land/desirability that has gone up, right? It's not like 2x4s and labor have increased 30% in 4 years.
So should I be calling them and asking why it went up so much? No updates or other modifications have been done to the home.
Or am I missing something?