Several Portland Maine area cities and towns are conducting tax reassessment, including Scarborough and Portland. They call it “revaluation”, which sounds a lot less threatening. But the result is the same: to adjust property taxes.
Property tax revaluation is a zero sum exercise. Some property owners pay less in taxes, while others pay more. Although a municipality’s total property valuation may increase due to revaluation, the tax rate is adjusted to generate the same revenue as before.
Tax assessments are based upon market value. Waterfront property owners and those in highly desirable areas will pay more taxes than an owner of similar property located in a less popular location. That’s because their property is worth more on the real estate market.
If My Home’s Tax Value Increases, Should I Increase my Homeowners Insurance?
Probably not, unless your assessment increase is due to a physical improvement in your property. Home insurance is based upon rebuilding cost, not market value. Market value includes acreage and landscaping. Your homeowners insurance doesn’t cover those things.
Your home’s location in town affects its market (tax assessment) value but not its rebuilding cost. Labor and material usually cost the same across town. So, unless you’ve increased your living space, built a garage or other outbuilding, or upgraded your kitchen or baths, you may not need to adjust your insurance amount.
Your Insurance Agent Can Help
Ask your insurance agent to recalculate the replacement cost of your home every few years. That helps to make sure you’re not buying too much insurance or too little. Don’t be surprised if the rebuilding cost differs significantly from the assessed value of your property. Remember, your insurance goal is to rebuild your home after a disaster, not buy it again.
Is Your Maine Home Insurance Adequate?
If you own property in the Greater Portland Maine area, contact Noyes Hall & Allen Insurance at 207-799-5541. Or, you can get Maine home insurance quotes online in 10 minutes from noyeshallallen.com
Your Noyes Hall & Allen agent can help you determine the proper amount of insurance for your home. And we offer a choice of Maine’s preferred home insurance companies. We can compare quotes and coverage to find the best insurance value for your home. We’re independent and committed to you.