Profile picture for HopeThisHelp

house value decrease does your home insurance policy premium decrease also?

so when I bought my home it was valued at $400k+ it is now valued at less than $300k.  Does that mean my insurance policy should adjust and I pay less for my policy or not?  has anyone called their home insurance policy holder and got them to adjust premium down?
  • May 08 2009 - US
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Answers (3)

Home insurance prices are based largely on the price to replace your home, which can on older homes even exceed the market value. The other main component is credit score, which can provide up to a 50% discount for excellent credit.
  • May 28 2009
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Profile picture for wetdawgs
Insurance prices are based on the prices to repair or rebuild the home not the sales prices.  Repair/rebuild prices have not dropped as dramatically as sales prices, so I suspect you won't see a decrease.  However, do let us know what you learn when you call.

  • May 09 2009
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Call your insurance agent and ask.  It can't hurt to make a phone call.

However, it is my experience that our homeowner's insurance is based on the cost to rebuild the home - not the market value of the home.
  • May 09 2009
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