By Rob Hallberg

I hesitated to write this article as my goal is to provide interesting news about the Tucson area. But despite it being boring, Homeowner’s Insurance has become an important consideration in today’s real estate market.

One problem is our prices are rising so fast that the amount of coverage on your home may not be keeping up. And if you have made a major upgrade to your home such as a new kitchen, this will likely not be included in your home’s value. For a total loss, Homeowner’s Insurance provides Replacement Value coverage.

The cost to replace your home is often higher than the appraised value. Some insurance companies factor this in when they send out a renewal notice, but that’s not always the case. If you do not see your home’s replacement value rising in today’s market, ask your insurance company about the coverage.

Another little known fact about Homeowner’s Insurance is vacant home coverage. Most home insurance policies are based on the home being occupied. Occupied homes are less likely to suffer losses as homeowners are present to protect their property.

However, as unoccupied homes present a higher risk for an insurance company their policies will often not cover homes that are vacant for more than 30 days. If you are listing your home and have moved out, or if you are a seasonal resident, you should check with your insurance company regarding their coverage. It is a simple matter to change coverage to include an unoccupied home.

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