Can an insurance company arbitrarily raise the amount of insurance on my homeowner’s policy (replacement cost value) without my consent?
Consult with your agent to determine if you have replacement cost coverage. If so, then the company most likely has the option at each renewal to adjust your replacement cost figures accordingly. Remember, this would be the amount it would take to replace your home, not the amount for which you could sell it. Most companies require that homes be insured at the full replacement value. As the building costs in an area increase, it becomes necessary for the company to increase the covered amount at renewal to maintain full replacement coverage. The company is required to provide at least 30 days notice to you or your designated representative when making this type of change to your policy unless you have provided written consent to automatic increases in coverage.