Every week I sit with homeowners across Chappaqua, Briarcliff, Armonk, and the surrounding towns, and one theme keeps resurfacing: almost nobody is confident they’re properly insured. Some are massively over-insured and paying premiums they don’t need to. Others are unknowingly under-insured—leaving themselves exposed if something were to happen.

The good news? With a simple 30-minute audit, most Westchester homeowners can quickly determine whether their insurance coverage is aligned with today’s construction costs, replacement values, weather risks, and lender requirements.

Here’s how to do a fast, practical audit that could save you money—and give you peace of mind.

1. Start With Your Home’s Replacement Cost (Not Its Market Value)

Many people assume that their home’s market value and replacement cost should be similar. In Westchester, that’s almost never true.

Market value includes land value, school district desirability, taxes, inventory levels, and dozens of other factors that have nothing to do with rebuilding your home from the ground up.

What matters for insurance is your Replacement Cost Estimate (RCE)—how much it would cost today to rebuild your house using current materials and labor rates.

Why this matters now:

Construction costs in Westchester have increased dramatically over the past several years due to labor shortages, supply-chain delays, energy costs, and material price hikes. If your policy hasn’t been updated recently, there’s a real chance your RCE is outdated.

A quick call to your carrier or agent can confirm whether your coverage amount reflects 2025 building costs.

2. Review Your Dwelling Coverage and Extended Replacement Rider

Most policies include two major buckets:

• Dwelling Coverage (Coverage A): The core amount your insurer will pay to rebuild your home.

• Extended Replacement Cost: An add-on that gives you an additional 10–50% of protection if construction costs spike after a major weather event.

Here’s where many Westchester homeowners get stuck:

Under-insured:
If your home would cost $1.2M to rebuild but your policy only covers you for $900k, you’re taking on unnecessary risk.

Over-insured:
If your policy is based on an inflated RCE (common in older policies that have been blindly renewed), you might be paying for coverage far above what you actually need.

A simple conversation with your carrier can determine whether your numbers match today’s realities.

3. Check Your Personal Property Coverage—You Might Be Paying Too Much

Your personal belongings are typically insured based on a percentage of your dwelling coverage—often 50–70%. For some homeowners, that’s far more than they need.

For example:
If your home is insured for $1M and you have 70% personal property coverage, your policy assumes you need $700k to replace your belongings. In reality, most people could replace everything they own for far less.

Small adjustments here can lower your premiums significantly without compromising protection.

4. Examine Your Deductibles—Higher Isn’t Always Better

As carriers have raised premiums nationwide, many homeowners increased deductibles to save money. However, in Westchester’s older housing stock—with aging roofs, older HVAC systems, and active winter weather—your deductible shouldn’t be so high that a legitimate claim becomes financially painful.

Rule of thumb:
A deductible should be an amount you can comfortably absorb without disrupting your budget, while still keeping your premiums reasonable.

5. Review Your Roof Coverage—It’s Becoming a Huge Topic in 2025

Insurance companies are tightening their guidelines around roofs, especially those over 20 years old. Some carriers now prorate payouts for older roofs unless a “replacement cost” rider is added.

If you have an older roof and haven’t reviewed this section of your policy recently, you could be at risk for significant out-of-pocket expenses.

6. Don’t Forget About Water Backup and Flood Coverage

Westchester homeowners see firsthand how quickly water issues can occur—blocked storm drains, failed sump pumps, rising groundwater, and intense storms.

Water backup coverage is not automatically included in most policies. Neither is flood insurance, which many homeowners incorrectly assume they don’t need.

Given the rise in extreme weather, it’s worth confirming that you’re protected from the kinds of water-related losses common in this area.

7. Ask Your Carrier for a “Coverage Optimization Review”

Every major insurer can run a quick audit comparing your current coverage with updated replacement costs, local construction rates, and discounts you may qualify for.

This step alone often uncovers:

• outdated coverage amounts

• unnecessary riders

• missing protections

• discounts for alarm systems, smart home tech, or new roofs

It’s an easy 10-minute call that many homeowners never take advantage of.

The Bottom Line

Most Westchester homeowners are either paying too much or unknowingly exposing themselves to costly gaps in coverage. A simple 30-minute audit—paired with a conversation with your insurance carrier—can optimize your policy, often saving hundreds per year while ensuring that your most valuable asset is fully protected.

If you’d like recommendations for trusted local insurance professionals, or you want to understand how your coverage choices could impact resale value, feel free to reach out anytime.

Call / Text: 917-817-8270
Email: [email protected]