When it comes to finding a homeowner’s insurance policy, most homeowners know that they need a policy large enough to cover the replacement cost of their home. Though many factors affect the premium of your policy, the value of your home does play a role in determining how much insurance you need and how much you’ll pay for the plan. The experienced insurance agents at Albers Insurance Agency in Cincinnati, OH, explain how your home’s value affects your homeowner’s policy.

Consider the Cost of Replacement

The larger your homeowner’s policy is, the higher the premium will be. This is because you’re purchasing insurance to cover the cost of both replacing items inside your home and the cost of repairs to the structure itself. While the property value is not directly tied to the overall cost of your insurance policy, it might influence how much coverage you decide to purchase. The last thing any homeowner wants is to file a claim only to discover that their home was underinsured.

What If Your Property Value Changes?

Property values do fluctuate from year to year and can change if you perform any upgrades or remodel your structure. That’s why it’s best to reevaluate your policy every few years to make sure that you’re paying for the coverage you need. Some upgrades may even give you discounts on your rates, so while they increase your property value, they may end up saving you money on your homeowner’s insurance. Even if you haven’t done anything around your property, it’s best to speak with your insurance agent to make sure you have the right policy for your needs, as some providers introduce new discounts and savings each year.

Whether you’re a new homeowner or simply want to explore different coverage options, the team at Albers Insurance Agency can help. Visit their website to learn more about their coverage options and call (513) 891-3304 to speak with an experienced insurance agent today.