Is Your Home Insurance Keeping Up with Your Home’s Value?

You’ve invested time, energy, and care into making your house a home, and it shows. But has your homeowners insurance kept pace with your improvements? If your coverage is still based on your home’s original condition, you could be underinsured without even realizing it.

At Roland Abbott & DeZoort Insurance, we help homeowners across Georgia protect what matters most. Here’s what you need to know about keeping your policy up to date.

Why Replacement Cost Coverage Matters

Replacement cost value (RCV) is the amount it would take to rebuild your home to its pre-loss condition in the event of a disaster like a fire, tornado, or hurricane.

The goal of RCV isn’t to upgrade or improve your home after a loss—it’s to restore it to the way it was before. For example:

• If a storm destroys your home, RCV coverage helps you rebuild without facing the financial gap between your original policy and today’s construction costs.

• If you bought a fixer-upper and then remodeled the kitchen, added a room, or upgraded your siding, your insurance needs to reflect those updates. Otherwise, you risk being left underinsured.

  
  

When to Review Your Policy

Any time you make improvements or upgrades, it’s smart to notify your insurance agent. Consider a policy review if you’ve:

• Replaced or upgraded your roof

• Built a new garage, shed, or pole barn

• Added square footage with a new room or addition

• Renovated key spaces like kitchens or bathrooms

• Finished a basement, added a patio, or installed other amenities

Even without major changes, checking in annually is a good idea. Construction costs and property values fluctuate, and regular reviews help ensure your coverage reflects today’s realities.

Keep a simple log of your home updates and share it with your agent at review time.

Replacement Cost vs. Market Value

Homeowners often ask about the difference:

• Replacement Cost Value (RCV): What it would take to rebuild your home—including materials, labor, and construction costs—not including the land.

• Market Value: What your home could sell for on the open market, including the land. This is influenced by location, demand, and housing market trends.

Insurance is based on replacement cost, not market value. That’s why keeping your policy updated is so important.

Independent agents often use replacement cost estimator tools. These calculators factor in details like square footage, roof type, building materials, and recent updates to provide an accurate rebuild cost unique to your home.

The Bottom Line

Your home deserves protection that keeps up with its value. By keeping your insurance agent in the loop about renovations and scheduling regular reviews, you’ll have peace of mind knowing your coverage is ready when you need it most.

At Roland Abbott & DeZoort Insurance, we’re here to guide you through every step. Contact us today to schedule a home insurance review and make sure your policy reflects your home as it stands now—not years ago. Give us a call at 478-745-7200 and experience the difference today.