For the first few years after we moved into our house in 2007, the value of the home declined on pretty much every level. Comparable houses went for less. Average square foot went less. Zillow told us it was worth less. Even our property tax assessments told us it was worth less every year. We didn’t trick ourselves into thinking it was worth more. We knew darn well, just like everybody else, that it was worth less.
Well, almost everybody.
Allstate apparently has not gotten on board with the lower value theory.
Our homeowners policy is probably just like every other one in that it defines the maximum replacement cost if the structure had to be rebuilt. This makes sense, but what doesn’t is that it has risen each and every single year, and not by a small amount.