You hear it on the news, read it in the paper: Oregon House values are dropping.  According to Zillow, home values nationally are now down 21% from their peak in the second quarter of 2006.
What’s a homeowner to do?
Though it may seem to follow that lower Oregon house values

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You hear it on the news, read it in the paper: Oregon House values are dropping.  According to Zillow, home values nationally are now down 21% from their peak in the second quarter of 2006.

What’s a homeowner to do?

Though it may seem to follow that lower Oregon house values might go hand in hand with less Oregon house insurance coverage, that’s not true.  Why?  Well, guess what’s not going down: the cost of rebuilding and repairing Oregon houses.

Many of us are looking to reduce expenses, but before you cut back on your Oregon house insurance coverage, consider why you have house insurance.

Oregon House Insurance
Lets say your house is damaged or destroyed by certain unexpected, accidental events, such as a fire, a lightning strike, or a windstorm, or the like, more than likely you will want to repair or rebuild your house.  Most people can’t afford to rebuild their house on their own without financial help.  Your Oregon house insurance policy is there to help by paying you for covered damage so you have the money for repairs.

Whether your policy provides coverage on a replacement cost or actual cash value basis is of critical importance.  Although there is some variation depending on individual state law and specific policy terms, in general:

* Replacement cost is the amount it would take to repair or replace your home with equivalent construction and with materials of like kind and quality — without deducting for depreciation (the difference between what your property was worth “new” versus “used”).

* Actual cash value is the amount it would take to repair or replace your home with materials of like kind and quality — less depreciation. For example, in determining the actual cash value of a roof replacement the insurance company would deduct depreciation for the age of a 17-year-old roof with a 20-year life expectancy.

Oregon House Insurance – Market value vs. reconstruction cost
Reconstruction cost is not the same as the market value, assessed value, what you paid for your home or even the amount your home would bring if you sold it today.  It’s what it would cost to rebuild your home after a loss.  While home values have decreased, reconstruction costs have not.  It is important that you consider what it would cost to rebuild your home, considering the specific characteristics of your home.

So, if you’re considering reducing your Oregon house insurance coverage, check with us first.  As your partner in this hard to understand industry, we’ll be glad to help you along the way.  Just complete the form above and get the best Oregon house insurance quotes from the top insurance companies in the great state of Oregon.  That may help you decide whether your policy provides the coverages you want, and give you the opportunity to make adjustments, or just find the best priced insurance quotes.

There are other ways you may be able to save money.  You could increase your deductible or you may qualify for multiple-line discounts.  Complete the form above to find out all of your best money saving options, and make sure you have purchased coverage amounts sufficient to rebuild your house and replace other property.

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