Replacement Value vs Market Value
of Your Home

Posted September 2nd, 2011 @ 05:09pm by: Avallo

Recently we have been receiving a number of calls regarding the value of their homes. With the real estate market down considerably many people think that they should be able to reduce the value of their dwelling coverage on their insurance policy. many homeowners equate the worth of a home to its market value especially if the home was a recent purchase. While the market value is a valid calculation of a homes worth for buying and selling it has little to do with the cost of rebuilding. What your insurance policy is intended to do is to rebuild your home when destroyed by a covered peril. There are several factors that go into the calculation of the replacement cost of a home which I will just name a few. After a disaster such as a tornado the cost of building materials and rise because of increase demand. Repair work to a partially destroyed home is done from the top of the home down. This is more time consuming and labor intensive. Changes to building codes may require costly updating even for undamaged parts to the home. Let's not forget demolition costs which you would not have if you built a new home. The replacement cost of your home will be higher than the market value or tax value. I hope this will help you understand why we have to insure your home for its replacement value, you will be glad you did in the event of a loss.

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on February 11th, 2014 at 08:51am

Nice post

on February 2nd, 2012 at 08:53pm

Let US begin using a short description of policy contract and the reason you want it to handle the threats in your whole life, before QuotesChimp start investigating the four leading varieties of private insurance. Comprehening this will allow you to be more prepared when you see your general agent.

on March 4th, 2014 at 11:30am

you do realize in order to keep his prismoe that they would not go out of Business he just gave them 58 million more customers and if not the IRS will attach your refund and or fine you,where did I get the 58 mill you ask? you forget that he is fix en to give amnesty to immigrants unless of course the republicans did in their heels on it,what with all the violence in mexico right now and dead arizona man

on October 17th, 2013 at 03:50am

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on October 25th, 2013 at 03:49pm
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