Replacement Value and Market Value Differences…Did You Know?
When looking for the right homeowners insurance policy to provide coverage for your home, your agent will likely offer you a policy based on the replacement value not the market value of your home. Many people get the two confused or believe that the two amounts are the same, and therefore, do not invest in enough insurance to properly protect their home.
The market value of your home is the amount of money that you could get if you sold your home right now. The replacement value of your home is how much it would cost to rebuild your home with similar materials if it is completely destroyed. In most cases, the replacement value of your home is much more than the market value of your home, which can surprise some homeowners.
If you have made any renovations to your home, it is time to reevaluate your homeowner’s insurance policy. The replacement value of your home takes the square footage, style, and quality of your home into consideration when deciding on what the replacement value of your home is. Two homes that look exactly alike on the outside can have completely different values based on what is inside. Talking with your insurance agent is the best way to ensure that your home is properly protected with the right amount of home insurance coverage.
At Sausman Insurance Agency, we strive to provide the most comprehensive insurance policies to all of our clients. Each day, we hear very interesting and important questions about the insurance coverage options that we offer. To help share what we have learned from all of our clients, we have put together some important answers to help you navigate the different insurance policies available. If you have any questions about your insurance coverage, please feel free to contact us today! We have locations in both Mifflintown and Millersburg, Pennsylvania to help with all of your home insurance needs.