Many homeowners are witnessing something positive - property values going up. With every rise in the housing market, the place you call home becomes a more significant part of your financial future. It’s not just a house anymore. It’s an asset. A milestone. A source of pride.
While the headlines focus on rising prices and busy real estate markets, another side of the story often gets missed. As homes gain value, the cost to rebuild them also increases. And if your home insurance hasn’t been reviewed in a while, it may not be strong enough to match what your home would cost to replace today.
Homeowners often assume their policy adjusts with the market. The truth is that home insurance is based on how much it would cost to rebuild your home using current materials, labor, and construction methods—not how much it could sell for.
That difference matters more now than ever. In recent years, lumber, cement, electrical work, roofing, and plumbing costs have climbed. Hiring contractors and skilled trades has also become more expensive. If a fire, storm, or other significant event damages your home, your policy must reflect those rising costs.
Your home was insured for $300,000 when you moved in. At the time, that may have been enough to rebuild it. Fast forward a few years, and the same rebuild might now cost $400,000 or more. If your coverage hasn’t changed, a $100,000 gap becomes your responsibility in the event of a total loss.
No one expects their home to be damaged or destroyed. That’s what insurance is for. But if the policy falls behind while your home’s value rises, it exposes you. Having strong coverage is not about preparing for the worst but protecting the life you’ve built.
There are a few clues that your policy may need a closer look:
Your home has increased in value over the past few years
You’ve made upgrades like a new kitchen, bathroom, or room addition
Local building materials and labor costs have gone up
It’s been more than a year since your last policy review
Each of these signs points to the same question—is your home insurance keeping up with rising value?
Also Read: Understanding the Basics of Home Insurance in California
Home insurance is becoming more important as a direct result of the changing times we live in. As your home grows in value, your protection should grow with it. Standing still is not an option when the world around you is changing. Take the step to ensure your home is truly protected. Don’t wait for damage to test your coverage; know now that you’re prepared.
At CF&P Insurance Brokers, your home should be insured based on what it would take to rebuild it today, not what it cost yesterday. We work closely with homeowners to ensure their coverage reflects current market conditions and building costs.
We take the time to understand the details. From square footage to updated features, we help you ensure your policy fits the home you live in now—not the one you bought years ago. We also help coordinate with other protection areas, such as auto policies, so your coverage is complete from every angle.
We know your home holds more than your belongings. It has your memories, your future, and your sense of stability. That’s why we take this responsibility seriously. For more information, contact us at (925) 956-7700 today.
