DOVER, Del.- According to the Delaware Department of Insurance, recent property reassessments will not directly increase homeowners insurance premiums, despite concerns from some residents.
The agency said Tuesday that insurance companies do not use county tax assessments to determine the cost of homeowners insurance.
Instead, premiums are based on the cost to rebuild a home, also known as its replacement cost.
State officials said they surveyed insurance carriers and found no company is adjusting rates solely because of the statewide reassessment.
Property reassessments are used to determine property taxes, not insurance rates, according to the department.
Insurance policies typically cover either the replacement cost of a home — the amount it would take to rebuild it with similar materials — or its actual cash value, which factors in depreciation.
Trinidad Navarro encouraged homeowners to review their insurance policies each year to make sure their coverage still meets their needs.
The department also suggests homeowners ask how their replacement cost is calculated, keep safety features like roofing and smoke detectors updated, and shop around if premiums change.
Officials say homeowners may also be able to lower premiums by bundling insurance policies, increasing deductibles, improving home security or reviewing coverage annually.