Your homeowner’s insurance coverage is too low!

October 14th, 2023

House For Sale

Your homeowner’s insurance coverage is probably too low!

Check your home value annually

You should annually check your house value by having a local realtor pull comparable sales. Or use resources like this home valuation tool from Redfin. Or this one from Zillow. These tools will help you to adjust your home insurance as needed. Or you can ask a local realtor you trust to send you comparable sales. After a certain period you may find your existing insurance coverage is insufficient.

And let’s face it, who checks their house value annually? Who makes increase and adjustments as needed? Not many of us.

I would look at adjusting your insurance coverage every 1-2 years. Consider changing deductibles and coverages. It is good to review the entire policy at times. And ask questions about various scenarios. For example, what happens if there is a flood caused by leaking pipes? What happens if there is a flood caused by nature? How much coverage do I have for mold damage?

Itemize your belongings

Make a list of your belongings and their approximate value, keep receipts and/or appraisals if you can. This will help you estimate the amount of personal property coverage you need.

Read up on insurance to do’s

Look at customer reviews and ratings of insurance companies

Gauge the quality of insurance companies service and reliability. I have a water damage claim going now, my first ever, and it has taken 100 days and counting. And my insurer has made little progress on my claim. They also do not keep me informed of what is going on.

At least they did confirm I had mold remediation coverage. At first the claims adjustor said, “Well, most policies only have $5,000 for mold remediation. And your repairs will cost much more than that.” Hmmmm, OK. I don’t even remember discussing mold coverage with my insurance agent. Probably because they don’t bring up these sorts of mundane things. They are not mundane when they happen to you! But wait, good news. The claims adjustor then said, “Wait. I see in your policy that you have $15,000 of coverage for mold. You should be fully covered for the required repairs”. Good news indeed. But I wish someone would have told me this up front when I was purchasing my insurance policy. It makes me wonder what else I should be thinking of that I am unaware of.

Notes on condo insurance


An important take away is that homeowner’s insurance is not a one-time purchase. It is more of a maintenance item. It is something to review regularly. Don’t just set it, and forget it. Give it a lot of attention and research when you purchase it. And make a note to review it regularly. If you ever have to make a claim, you’ll be happy you stayed on top of it.

Insurance notes when you are getting a mortgage

Contact me to discuss your homeowner’s insurance, mortgage rates, or other mortgage questions. Click here to schedule a call or you can email me directly.

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Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.

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