If your home were damaged or destroyed tomorrow, would your insurance actually cover the cost to rebuild?
It’s a question many homeowners don’t think about—until it’s too late.
The truth is, being underinsured is more common than most people realize. Even if you’ve had the same home insurance policy for years, rising construction costs, inflation, and updated building codes can leave your coverage limits far below what you’d actually need to rebuild your home from the ground up.
Why Rebuilding Costs Have Risen
Over the last few years, the price of materials, labor, and transportation has gone up significantly. What might have cost $250,000 to rebuild in 2019 could now cost over $350,000—or even more—depending on your location and the type of home you have.
Unfortunately, many homeowners’ policies haven’t kept pace with these increases. So even if your home is insured for what you paid for it years ago, that number might no longer reflect today’s rebuild value.
The Difference Between Market Value and Rebuild Cost
It’s important to understand that your home’s market value (what it would sell for) isn’t the same as its rebuild cost (what it would take to reconstruct it after a total loss).
Market value includes the land and location—things insurance doesn’t need to replace. Rebuild cost focuses only on the structure itself: the materials, craftsmanship, permits, and compliance with local building codes.
How to Make Sure You’re Properly Covered
- Review your policy limits annually. Ask your insurance agent to recheck your dwelling coverage amount based on current rebuild costs in your area.
- Consider inflation protection. Some policies automatically adjust for inflation each year—but not all do.
- Ask about replacement cost coverage. This ensures your claim covers what it actually costs to rebuild, not just the depreciated value of your home.
- Update your policy when you renovate. Adding square footage or upgrading finishes can increase rebuild costs—and should increase your coverage too.
Don’t Wait Until After a Loss
Finding out your coverage isn’t enough—after a disaster—can be devastating. Reviewing your policy now can give you confidence that your home and your investment are fully protected.
Ready to Learn More?
Reach out to April Jones Insurance Agency today for a coverage review and a personalized quote. We’re here to help you protect your inland or coastal North Carolina property with confidence.
📞 (910) 660-0215
🌐 www.apriljonesinsurance.com
