--- title: Some Sobering Facts and Enlightening Advice About Home Values in California description: "Its a depressing prospect: the housing market still hasnt recovered from the monumental setbacks but what about your insurance" image: https://www.sutherland-scherff.com/hs-fs/file-13463221-jpg/images/some_sobering_facts_and_enlightening_advice_about_home_values_in_california.jpg --- [![logo](https://www.sutherland-scherff.com/hs-fs/file-2124776912-png/image/logo.png)](https://www.sutherland-scherff.com/) [![Facebook](https://www.sutherland-scherff.com/hs-fs/file-2124776847-png/image/f.png)](http://www.facebook.com/pages/Sutherland-Scherff+Insurance+Services,+Inc./259814816749)[![Twitter](https://www.sutherland-scherff.com/hs-fs/file-2123924931-png/image/t.png)](http://www.twitter.com/SutherlandIns)[![YouTube](https://www.sutherland-scherff.com/hs-fs/file-2124776862-png/image/y.png)](http://www.youtube.com/user/SutherlandIns)(888) 400-1133 # The Insurance Family Blog ## [Some Sobering Facts and Enlightening Advice About Home Values in California](https://www.sutherland-scherff.com/blog/bid/64377/Some-Sobering-Facts-and-Enlightening-Advice-About-Home-Values-in-California) Posted by [Susie Scherff](https://www.sutherland-scherff.com/blog/author/susie-scherff) on August 22, 2011 at 1:12 PM - [Tweet](https://twitter.com/share) ![Some Sobering Facts and Enlightening Advice About Home Values in California](https://www.sutherland-scherff.com/hs-fs/file-13463221-jpg/images/some_sobering_facts_and_enlightening_advice_about_home_values_in_california.jpg?width=273&height=199&name=some_sobering_facts_and_enlightening_advice_about_home_values_in_california.jpg)It’s a depressing prospect: the housing market still hasn’t recovered from the monumental setbacks we experienced a few years back.  Meanwhile, the recent slew of storms we experienced over the spring coupled with the prediction of very active hurricane season means** insurance rates are on the rise**.  In high-risk locations, some homeowners are paying as much as a **20% increase** in their [home insurance](https://www.sutherland-scherff.com/personal-insurance/home-insurance/) rates. ## **What California Residents Should Know About Home Insurance Rates** It is of utmost importance that you understand that your **premiums are not based on the market value of your home**.  *They are based on the rebuilding costs of your home*.  As part of the recession we’ve experienced, home values have continued to fall while construction activity has plummeted.  Simultaneously, the **cost of construction materials spiked 7.5%** since spring of this year alone.   In the event of an emergency where you are forced to rebuild, that cost is transferred to you.  It presents **homeowners and home insurance policyholder**s with a dual dilemma.  It’s kind of like being kicked when you’re down, isn’t it? Remember: your **home’s insurance policy** is based on rebuilding cost, not market value.  Therefore, the **decrease in real estate values does not equate with a decrease in home insurance premiums**. ## **Saving Money On Your Home Insurance While The Housing Market Is Still In Decline** Our character is defined by our actions amidst adversity, and while these are undeniably tough times, there are still things we can do, not only to save some money, but also to **protect our investments**.  Michael Barry, spokesperson for the Insurance Information Institute suggests that, if you can afford it, you should increase your deductible.  You could save as much as 25% by doubling your deductible.  Be sure to **consult with your own agent** about what you can do to save money.  Ask if there are other ways you can get a discount, because oftentimes there are.  Modernizing your home or adding safety features are two options to consider. These are trying times, but it’s not too much to say that strong character…wisdom, foresight and prudence are at a premium.  Those traits can also reduce your home insurance premium.  *Ask Sutherland-Scherff for assistance with your home insurance quote today.* *[Download our Simplify Purchasing Homeowners Insurance Guide Now!](https://www.sutherland-scherff.com/simplify-purchasing-homeowners-insurance-now/) * * * Topics: [Building Insurance](https://www.sutherland-scherff.com/blog/topic/building-insurance), [Home Insurance](https://www.sutherland-scherff.com/blog/topic/home-insurance) ### **Subscribe** To Our Blog ### Most Popular Posts ### Browse by Tag - [Business Insurance (28)](https://www.sutherland-scherff.com/blog/topic/business-insurance) - [Auto Insurance (22)](https://www.sutherland-scherff.com/blog/topic/auto-insurance) - [restaurant insurance (22)](https://www.sutherland-scherff.com/blog/topic/restaurant-insurance) - [Home Insurance (17)](https://www.sutherland-scherff.com/blog/topic/home-insurance) - 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