Your home, like your car and everything else you own, does depreciate or lower in value as it ages. That being said, you might need less home insurance as your home ages and for some, the decision to reduce coverage due to depreciation is a tough one. For those in the Greenwood Lake, NY area, the agents with Windermere Insurance can help you decide what to do with your policy.
Policies are tailored to each individual home and as such your coverage and policy needs are going to change as your home ages. Depreciation most often occurs as a home ages and the policy is not altered to reflect the advanced age of the home. Though you are not required to change your coverage, for some, changing coverage can mean lower and more affordable monthly premiums. Your coverage is determined based on the value of the home and older homes are generally worth less.
That being said, you also must take into account how much it would take to rebuild your home. For some, accounting for depreciation is not going to make a huge difference in their monthly premiums. For others, keeping a higher coverage is more beneficial because it can help you to rebuild to current standards if your home is destroyed. No matter what you choose, your agent can help you decide if you should have your home insurance coverage adjusted to reflect the depreciation in your home. Generally, unless your home is significantly older or in disrepair that is not comparable to what it was when you took out the policy, your depreciation is not going to make a huge amount of difference.
For those in the Greenwood Lake, NY area, the agents with Windermere Insurance can help you find the right policy for you.