Estimate Your Home Value to Match Coverage Limits

Your home may be worth as much or more than your retirement account. So, it makes sense to track your home insurance as carefully as you do your 401k.

Getting Started

If you haven’t checked in recently, you might consider contacting an agent to schedule an annual review of your home’s value and contents.

We want to help you rest easy. And we think you’ll be even more relaxed knowing you’ve made informed decisions about the amount of home insurance you need to help you recover in the event of a loss. Check out the tips below to make sure you’re ready for the worst case scenario.

Know Your Limits

With home improvement a national pastime and construction costs rising, it’s a good idea to check your policy limits once a year. Planning to remodel your home? Just finished adding that new deck or garage or fence in your front yard? Time to review your limits.

Rebuilding Is Different Than Buying

When you review your policy, remember that the cost to buy and to rebuild are different. So you can’t rely on your home’s market value to set your insurance limits. An appropriate amount of insurance coverage will permit you to rebuild your home in the event of a total loss. That replacement value depends on the physical characteristics of your home, as well as the price of labor and materials in your area. In most areas, these costs increase with time.

We Can Ballpark Your Coverage Needs

Your Safeco agent can estimate the typical cost of rebuilding your home based on the average costs of materials and labor in your area. However, this number won't reflect major upgrades made to the home or the cost of replacing the home’s unique features, unless you specifically inform your agent or a customer care professional about them.

Be Proactive in Selecting Your Coverage Limits

If your home is truly unique or custom built, of if you’d simply like additional peace of mind in knowing that you’ve selected the right amount of insurance, consider asking an expert. For a modest fee, you can hire a building contractor to give you a more precise estimate of the cost of rebuilding your home.

Don't Forget to Do a Home Inventory

We recommend doing a thorough inventory of your home’s contents. Compare the value of your belongings to the "contents," or personal property limit, listed in your policy and make sure it matches.

The easiest way to do an inventory is to use a video camera, recording and describing items as you walk through your house. Using a regular camera and Safeco's home inventory checklist works well, too. Download the home inventory form [PDF] and share the completed list with your Safeco agent to review and make sure your belongings are fully covered. Store your video or photo inventory off-site, so you won't lose it if your house is damaged.