Is Your Home Insured to its True Value?

One of the biggest investments you make is purchasing your home. Did you know there is a difference between market value and replacement cost of your home and belongings?

Your home’s market value is the value determined by an appraisal and will include the status of the overall economy, your neighborhood’s property values, the condition of your home, the materials used to construct your home, and how much it’s worth in the current market. This is different from how much it would cost to rebuild the home if there were damage. Replacement cost is the estimated cost to construct a building with equal utility to the building being appraised, at current prices.

In the case of disaster, you’ll want enough homeowners insurance to rebuild your home, help replace belongings, to be used as support if you’re unable to live in your home and to protect your financial assets in the case of liability to others.

What are some of the factors that affect the rebuilding of a home?

  • Construction costs in your area
  • Structure square footage
  • The type of frame, masonry or veneer used for exterior wall construction
  • The style of the structure
  • The number of bathrooms and other rooms
  • The roofing materials used
  • Garages, sheds and other structures on the land
  • Fireplaces, exterior trim, arched windows and other special features
  • Whether the house was custom built, even if only in part
  • Improvements you’ve made that have added value to your home

Do you know if your home is insured to its value? My name is Sarah and I can help make sure it is…give me a call at 951 600 5751