Why Pay More For Homeowner's Insurance In Portland?

A year ago, I told a friend of mine it would be a good idea to re-examine his homeowner’s insurance. He had bought a brand new home from Arbor Homes in NW Portland back in 2004. Since then, the neighborhood and his house had strongly appreciated, but his homeowner’s insurance policy hadn’t changed at all.

So the other night at dinner, my friend reminded me of my advice to him. He followed it and actually increased his coverage.

If you’re a Portland homeowner, you may want to increase your homeowner’s (hazard) insurance too.

There has been great real estate appreciation in Portland during the last few years. So if you’re reading this, there’s a really good chance that your home is worth a lot more today then when you purchased the property. But does your homeowner’s insurance equal your home’s current worth?

For example: You purchased a new house for $350,000 in 2004. But the neighborhood you live in appreciated strongly and today the house is worth $475,000.

If, however, you have not increased your homeowner’s insurance, you’re only covered for the $350,000. And if something unfortunate, like a fire, created the loss of your property, would you be reimbursed for today’s market value of $475,000? Hmmn.

Ask your insurance agent for more details. I don’t claim to know how every policy or company works. And it’s my understanding that some companies provide some type of “extra” coverage in policies that could account for some appreciation. But while it’s been great to be a Portland homeowner during this housing boom, it’s also smart to be protected for the right amount.