Do You Have Adequate Insurance To Replace Your Home In The Event Of A Significant Loss?

Do you have adequate insurance to replace your home in the event of a significant loss
August 9, 2022

Many homeowners may surprisingly answer this as “YES”. Choosing or verifying a building limit is an important part of issuing or renewing an insurance policy. If a loss occurs, it will be essential that the limit is high enough to indemnify the insured for a loss.  The value of your home can increase for several different reasons. Building a garage, adding an addition, remodeling, etc., all of these changes can potentially increase the value of your dwelling. “Insured to Value” differs from “Market Value” in the aspect that insuring to value refers specifically to the cost to replace or repair the dwellings you own in the event of a loss whereas the market values vary based on many regional and economic factors. Replacement cost is continuously increasing because the increase in cost of materials and labor. So, it is important that when choosing a limit, one should consider many factors including the valuation type, building construction, square footage, permanently installed equipment, unique building characteristics, availability of building materials, etc. If you want to confirm what coverage you currently have, you can contact your independent insurance agent at any time.

Authors & Contributors: Brittney Smith, Nicole Delahanty, Stacie Romanelli, Chelsea Arteta and Lisa Stinchcomb

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