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Our customers often ask, "My home was appraised at $60,000, why do I need to be
insured for $100,000?"
Replacement cost is defined as the amount of money it would cost to rebuild your home as
it is. Market value is the amount for which you could sell your home.
We have found in that market
value is often lower than the replacement cost of homes. In short, it costs more to
build than buy. Homeowners policies require that you carry at least 80% of
replacement cost coverage in order to avoid penalties in a partial loss. Make sure
your home is insured properly, or you may have to share the financial burden of rebuilding
or repairing your home.
IS YOUR HOME UNDERINSURED?
Link takes you to Article on MSN |
When purchasing
insurance for your home, there are many variables to consider. This page has links
to information that will help explain the coverages available. This site is for
information only. Please direct specific questions to one of our agents. Click
