Home values have gone up in Utah recently- a lot! 38% in the last five years, to be precise. Your homeowner’s fire insurance, however, isn’t based on the value of your home, but on the cost it would be to rebuild it if it were to burn down.
These costs are based on construction costs, which have also gone up. In 2015, the average price per square food to build was between $90 and $123, while right now it ranges between $115 and $177 per square foot. These figures, however, include the lot your home is built on, something which isn’t figured into rebuild costs, as you still have your lot.
Each January, I recommend shooting your insurance agent a quick email or call and making sure you are adequately covered in the case of an emergency like that for your own peace of mind. Some insurances go off of your mortgage amount and if it doesn’t cost the same amount to rebuild as your mortgage, it might not be worth it.
If you are curious about what your home is worth now compared to when you purchased it, feel free to give me a call and I can give you a home valuation!
