The good news is your home has never been worth more. That takes some of the sting out of the fact that the stock market is down, and that you now need to work 10 years longer than you’d planned.

But take heart. The housing price run up is real. In 2021, the average U.S. home appreciated 17.1 percent, a record high, according to CEIC Data, a market research firm that has been tracking housing prices for 30 years. That’s something considering the average per-year growth is 5.3 percent. So go ahead, celebrate your home equity boom, and get your happy dance out of your system, because now comes the bad news:

If your home has increased in value, you’re probably underinsured.

“Along with housing prices, building costs have also gone up,” said Laura Adams, a personal finance and insurance analyst with Clearsurance, an online platform that helps consumers shop and compare insurance plans to find the best value. “You’re only covered to rebuild your home for the amount of coverage you have, and with the increases in building costs, many people aren’t carrying enough home insurance coverage to do that.”

Bummer. I know. This is such a bore. You hate paying for insurance, and so do I. The last thing you need is another problem to lose sleep over. But you’d be really unhappy if your house burned down and you found out that you were only covered for what you declared the replacement value to be when you got the policy, back when the house was worth much less, and building dollars went further. Sigh.

However, before you stick your head in a tub of vodka, Adams has a better idea. While you probably need to contact your carrier to make sure your dwelling coverage is enough to cover your home’s full replacement …read more

Source:: East Bay – Entertainment

      

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