Having to pay taxes is a pain point that Americans all share. Whether federal, local, or state, taxes are a common expense that seems to only be rising in cost. One of the most relevant tax considerations is when your home is reassessed and the tax values are updated. While this change may seem unexpected or alarming, tax reassessment is a common practice and is something that is simply part of being a homeowner.
With tax reassessment, however, comes the concern that it may impact the homeowner’s home insurance policy. Many believe that it may increase the monthly premium or deductible amount, but homeowners would actually be surprised to learn about the real impacts of tax reassessment on home insurance. Let’s dive in!
What Happens When My Home Is Reassessed?
Tax reassessment happens when your local government adjusts the value of your property for the purpose of making sure that you are being taxed the fair amount. This recently happened in Schuylkill County, PA, and residents may have noticed workers in reflective vests inspecting their homes and properties. While this sounds alarming, the process is actually quite simple and stress-free for homeowners.
During the assessment, a worker will knock on your door and let you know that they are there to inspect your property and make sure all of their information is correct. If no one is home, they will complete the inspection and leave a notice at your door. You can refuse the inspection if you wish, and the inspector will leave and make their assessment based only on what they can see from the road.
While this whole process may seem invasive, the point of the inspection is not to intrude on your home. It is simply to make sure that the amount you are paying for your home taxes is as accurate as possible.
How Does Tax Reassessment Impact My Home’s Value?
After the inspection is completed, your local government and the inspectors will look at current market trends as well as the characteristics of your home that the inspectors noticed to figure out the current value of your home. Due to the current cost of housing consistently rising and other factors like inflation, it is likely that the value of your home will increase, though tax assessment doesn’t automatically mean an increase.
Once the value of your home is updated, your tax will be calculated as a percentage of that new value. When the value is set, you can expect the amount you have to pay to change. If the tax amount seems higher, it is because the value of your home is higher, not necessarily because you are getting taxed at a higher percentage. In fact, if you want to sell your home the increased value will likely result in a higher selling price and more money in your pocket. If you believe that the new value is inaccurate or unfairly calculated, your local government will have a system set up where you can appeal it.
Will The Increased Value Affect My Home Insurance?
When homeowners see an increased tax amount due to inflation and the housing market, they often wonder if their home insurance bill will change as well. This is a fair question, but many people would be shocked to know that home reassessments have no impact on home insurance, even if the home’s value has increased.
Because your home insurance policy covers the value of your home, when the value goes up the amount of coverage will too. This means that if your home gets damaged in a fire or natural disaster, you will be fully covered for the new amount of the home, helping you to get repairs or a new house. The increase in the value of your home is a great thing from an insurance standpoint, as it will increase the amount you are covered for without affecting your deductible or monthly premiums.
Strickler Insurance Has The Answers And Policies For Your Home
When you want to talk to an expert about your home insurance coverage, or when you are ready to find a new policy, Strickler Insurance is here to help. Whether you are looking for a quality homeowners policy, secondary home insurance, or insurance for your rental property, our team has the knowledge and resources to help you. Contact us today to speak with the insurance experts at Strickler.
