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Hamm: When property values go up, so should insurance coverage
 
BISMARCK, N.D.—North Dakota Insurance Commissioner Adam Hamm urged home and business owners today to make sure their property is adequately insured. Western North Dakota’s oil boom has driven commercial and residential property values up significantly in the last few years, which could mean property may be underinsured.

According to the North Dakota Association of Realtors, the average sale price of homes statewide has increased 21.6 percent in the last two years as of April 2013. North Dakota is also experiencing increased construction costs—not just in oil-producing counties and cities, but across the state. Home owners and business owners need to know how much their property is worth in order to insure it properly.

“Everyone needs to look at the value of their property and make sure their insurance is adequate in today’s market,” Hamm said. “Is the value on your insurance policy equal to what it would cost to rebuild the same home today?”

Due to increasing demand for living and working space, home owners and commercial property owners in western North Dakota are especially at risk of being underinsured. A house in a small town near the oil fields could be appraised at a much higher value in the current market than it was five years ago. For example, a home worth $30,000 five years ago could now sell for $120,000 to $150,000.

A real estate agent may be able to assist residents in evaluating their property’s current value.

To learn more about options for coverage and deductibles, contact your insurance agent. For more information about homeowners or commercial property insurance, call the Department at 1-800-247-0560 or visit www.nd.gov/ndins.

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North Dakota Insurance Department
600 E. Boulevard Ave.
Bismarck, ND 58505-0320
Phone 701.328.2440
Toll free 800.247.0560
Fax 701.328.4880

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