Home Insurance Rates Increase As Market Continues to DecreaseAs the housing market continues to decrease, home insurance premiums show no signs of decreasing anytime soon. One cause to blame is falling home values, because just as time passes for sellers waiting for the perfect buyer, the value of their home continues to drop along with the distressed price they’re asking for their home.However, just as selling prices and market values are dropping, insurance premiums have continued to increase – in some areas as much as 50%. According to insurance industry professionals, home insurance premiums are based, “on how much money it would take to rebuild your home in its current condition.” Because this number varies throughout the country, and is based on the costs of construction, as well as the costs for demolition and product removal, premiums vary as well.To the average homeowner looking to sell, this doesn’t seem very fair. Yet, mortgage companies are in agreement with the insurance companies, and typically require homeowners to carry, “as much insurance as the value of the mortgage.” As such, many home sellers are looking for a quick sale when it comes to listing their home, and are often willing to negotiate their asking price rather than face an insurance policy renewal – which may come with a hefty increase.When it comes to investing in homeowner’s insurance, you should make sure you work with a qualified insurance professional who is well versed in the different types of homeowner’s insurance. Once you and your agent determine how much coverage you need for your home, your agent should be able to explain all aspects of your policy to you, and be able to research and shop several companies for the best coverage and rate.Quite often, this process may seem time-consuming and tedious for some people; however, it’s the same people who are the least worried when they have to refer to their policy or call their agent – courtesy of troublesome weather from Mother Nature, such as water damage, lightning, windstorms and their projectile debris. It’s at times like these that policyholders can take comfort, knowing they will be compensated for their losses.When considering the current housing market, along with short-term predictions for the near future, the most important thing a person can do is make themselves aware of all the obstacles they may be facing, so that their biggest investment doesn’t turn out to be a bad investment.