Is Your Home Coverage Keeping Up?

These considerations could help you assess your home insurance needs.

Is Your Home Coverage Keeping Up

You’ve likely heard that housing prices in many parts of the country have surged in the past year. Although an asset’s increase in value is always welcome, this news—and other factors—means your home insurance may need another look.

Prices go through the roof

According to, as of July 2021 the median listing price for houses had gone up more than 10% in the past year. The increase may be even greater in your community. Although you likely appreciate the boost in equity, if something were to happen to your home, the cost of replacing it would be higher, too. That has implications for your insurance coverage.

Home improvement surges

If you’re like many homeowners, you spent at least some of the past year or so making improvements while you were stuck in your residence. Whether your goal was to add value or to increase space or comfort, those improvements probably have increased your home’s value. They might include things such as a kitchen renovation, additions or a finished basement. Again, more value means the need for more insurance coverage.

What will Santa bring?

What’s on your Christmas list this year? A new television or a replacement for your overworked PC? Perhaps it’s time to finally indulge yourself or your spouse with that new watch or jewelry piece you’ve had on your wish list.

You may be surprised at how many items you own—and by how much it would cost to replace them. Your home insurance is how you protect the value of those possessions, should anything happen to them. If it’s been awhile since you reviewed your coverage, now may be a great time to do so.

Check your policy

AAA offers a no-obligation Triple Check to give you the peace of mind that your home and other property are adequately covered. (Policies from any company are eligible for review.) Here are a few things you should do (in addition to listing improvements and home contents) as you prepare for the meeting:

Record the dates of important upgrades such as improvements to your roof, plumbing, electrical system or furnace, which may qualify you for additional discounts.* Keep the receipts in a binder.


Consider any changes that may warrant increased liability protection, such as the addition of an in-ground pool, treehouses or even trampolines. Trampoline coverage may vary by state and insurance company, which is another reason to ask AAA for a triple check.

Reconsider the value of your home’s contents and make sure you understand how they are covered, at replacement cost or actual cash value.

Many people confuse the market value of a home with the cost of rebuilding it. Market value represents what you could sell your home for in the current real estate market. Replacement value, as in an insurance policy, covers the cost of the labor, materials and cleanup needed to rebuild your home if it was a total loss. This can be significantly more than market value.

This story was featured in the
November/ December 2021 issue of AAALiving Magazine

*Discounts apply to select coverages only and vary by state and insurance company. Not all discounts available in each state.

Coverage is subject to all policy terms, conditions, exclusions and limitations. Discounts and savings opportunities subject to eligibility requirements. Subject to underwriting requirements. Insurance underwritten by one of the following companies: Auto Club Insurance Association, MemberSelect Insurance Company, Auto Club Group Insurance Company, Auto Club Property-Casualty Insurance Company, Auto Club South Insurance Company, Auto Club Insurance Company of Florida, or non-affiliated insurance companies.

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