If you receive a notice from your mortgage company that you need to increase the coverage on your home, you should give us a call.
Your home should be covered for what it would cost to rebuild it as it exists today. This means that if you've done any renovations or built an addition, we should review your coverage to make sure it is accurate.
Sometimes lenders will request that coverage be increased to match the balance remaining on the loan. If this increase in coverage is more than what it would cost to rebuild the house, it is not only prohibited in the state of Virginia (click here to read more about this Virginia law), but it also serves no purpose because the insurance policy will not pay out more than it would take to rebuild the home as it existed prior to the loss.