Why Homeowners Should Be Asking This Right Now
Imagine waking up to news of a wildfire, flood, or major storm nearby. It’s the kind of story that reminds every homeowner of a critical question:
Could your current insurance fully cover rebuilding your home today — in 2025’s market?
Why Costs Have Changed So Much
Rebuilding a home today costs dramatically more than it did a few years ago — thanks to labor shortages, higher material costs, and supply chain issues.
A house that cost $350,000 to rebuild in 2020 might now cost $450,000 or more.
If your insurance coverage hasn’t kept pace, you could be dangerously underinsured.
Key Coverages to Check
- Dwelling Coverage — Should reflect the full cost to rebuild your home (not its real estate market value).
- Extended Replacement Cost — Provides a critical buffer if rebuilding costs spike.
- Ordinance or Law Coverage — Covers mandatory upgrades to meet modern building codes.
Common Misconceptions
- “I have full coverage.” — Coverage types ≠ coverage amounts. Your limits could still be outdated.
- “It’s based on market value.” — Insurance is about rebuilding the structure, not buying land.
- “It adjusts automatically.” — Inflation protection increases are often too small to keep up with real-world rebuild costs.
Simple Steps to Stay Protected
- Request a replacement cost estimate.
- Review your limits annually.
- Confirm you have extended replacement and ordinance coverage if needed.
Bottom Line
Coverage that was right three years ago may no longer be enough.
Taking a few minutes to review your policy now could save you from major financial stress later.
Home is where your life happens. Make sure it’s fully protected for the world we live in today — not the one we lived in years ago.
