...have you let your homeowner's insurance know?

I received a letter from our mortgage company when we refinanced a few months ago and they said that with the recent appraisal of our home, it came to their attention that our home is no longer adequately insured...

Guess I should give them a call. Our premiums will go up, wah!?

Our homeowners is with State Farm. Our policy is adjusted annually for increased value.

Our house has lost value from what it was appraised for when we bought it due to the market. We bought it for about $35 under appraised value 2.5 years ago and it's worth about what we paid. Our insurance company knows this but we will have to inform them of a deck roof we having put on this spring....not sure if it will raise our rates or not

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Our premium went up $46 a year after we refinanced. They get you coming and going.

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The political system is broke and it's a joke.

Our policy automatically adjusts every year.

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Well... I guess it does adjust each year but with the appraisal, it was found that it was not adjusted enough. It has increased in value by $120,000 in the last 4 years -- it was a foreclosure and we've had a lot of work done on it (only reasons that I can think of that it has doubled in value in this time?!).

Interesting to read the replies...

The appraissal has no effect on the amount you should insure your house for. You need to insure it for the amount it would cost to rebuild it. This could be more or less than the appraisal. Insurance company's have sll sorts of tools to estimate this amount. You may need to talk to your agent directly to figure out what amount you actually need. If you underestimate you are SOL if your house burns and you don't have enough to rebuild but if you over estimate you will not get back more than that amount and will have paid extra over the years for nothing.

I believe ours was adjusted last year and every year, we have State Farm like some of the above posters. WHen I called I was told that the reason the premium went up was because the price to rebuild it went up, lumber, concrete, most building supplies have increased dramatically.

I know it's probably different across the country, but what do you pay? Not to change the subject, just to expand a little?

We pay almost $900 a year.

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"A true friend is someone who thinks that you are a good egg even though he knows that you are slightly cracked." ~ Bernard Meltzer

Yup! I think that the appraisal just alerted them to the fact that we are underinsured... and we definitely are! There have been no annual adjustments and we need to be insured for the rebuild value and we are not. I'll call him this week.

I think here in California, an increase in the home's value is usually due to the increase in the property (land) value.

My insurance does get adjusted when the cost of rebuilding goes up, but not because the house's value increased.

But when you refinance you want to insure for the increased amount of the mortgage.

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The political system is broke and it's a joke.