Your home is probably your largest and most important asset.  It keeps you warm in the winter months of frigid temps and blowing snow and cool in the sizzling summer heat.  Therefore, in the case of a total loss of your home, you want to make sure the insurance value is correct to rebuild your home.

Market value of a home is the opinion of what someone is willing to pay for a home.  Many things are taken into consideration for market value.  Some of those items are school district, the home's view, where it's located and the cost of that land.  However, almost none of these items affect how much it would cost to rebuild your home in the case of a total loss.

Homeowners insurance is calculated on Replacement Cost or Reconstruction Cost.  This is the cost it would be to reconstruct the home-excluding the land.  This cost is calculated by items such as square footage of your home, number of bathrooms, finished basement area, style of your home and exterior siding type.  Your home's value could vary dramatically from your neighbors home.  For example, if you have everything "builders grade" in your home and your neighbor had their tile flown in from Italy and cabinets hand made with rare teak wood, their Replacement Cost will be much more than yours with your homes only being feet apart!

Give us a call to make sure your home is covered correctly now to save worry later!

Posted 4:04 PM

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