[Will]

Bought my home in 2018 for $158k in LCOL Buffalo NY. Put 70k in renovations in. Insured it through Lemonade for $300k + 30k for other structures to cover my detached garage and shed. Premium was under $400.  Over the last 5 years, the premium crept up a bit, but not by much….most recently it was under $450.

Just got an email that they automatically renewed me for 20% more coverage ($360k + 36k other structures) and my new premium is $550 (20%).

Initially I was annoyed, but then I thought, after the run up in real estate prices in the last 3 years, I would likely need 30-50k more than in 2018 to buy something comparable and paying 20% more premium for 20% more coverage seems about right.

So this brings me to my question, Do any of you guys systematically increase your home insurance coverages?

[Cat Jackson]

It’s much cheaper to adequately insure yourself than to have a catastrophic loss and realize too late you were underinsured. I have my broker do a “checkup “ every year.

[Greg]

I own an independent insurance agency. First – your home insurance is insanely inexpensive. I’m genuinely concerned it’s actually too cheap. I know lemonade well – they are not a carrier I choose to work with and not a carrier I would recommend personally.

That aside, your coverage A (dwelling limit) will typically increase a little bit at minimum every year. This is to keep up with the cost of materials, labor etc to rebuild the house in the event of a total loss. The actual value of the property (what you can sell it for) is irrelevant to the insurance amount. The insurance amount is strictly based on the cost to rebuild the house in the event of a total loss.

Don’t miss: My home owners insurance went up $800 last year and then again $1200 this year, making my payment 7k to renew

[Christina]

My insurance company go over my coverage every 2 years.

[Author]

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