Have you ever wondered what your home is worth? Nearly all homeowners know what they paid for their home, but this does not always translate to the amount it will cost to rebuild the home. The cost to rebuild is the true value of your home and will guide you when obtaining the proper coverage for your home.
What is the difference between Market Value and Replacement Costs?
Estimating the market value of your home is necessary for financing, investment purposes, and sales listing. Many homeowners keep track of changes in the market value of their home whether they are selling or staying. Often times, homeowners will hire a professional appraiser, or do their own research online.
There are several benefits to knowing the value of your home such as, when you are considering refinancing, making home improvements, renting, or selling your home.
Understanding the cost of rebuilding your home is completely different. The market value of a home is dictated by completely different variables than the ones dictating the cost to rebuild your home. These factors also influence your homeowners insurance coverage and premium.
Replacement costs are based on the material and labor costs associated with rebuilding or replacing your property. When insuring your home, your dwelling coverage should equal the cost of replacing your home in the event of a total loss, at today’s labor and construction prices. Speak with your Edison Insurance agent if you have questions about your insurance limits. Remember, when making coverage decisions, you should consider selecting coverages which will provide you enough protection to rebuild your home at today's cost.
Keeping your family and home safe and protected is Edison Home Insurance Company’s number one priority. We have taken a bright and innovative approach to FL homeowners insurance with coverage options allowing you to customize a policy to best fit your needs. To learn more about Edison Insurance Company, or to get a personalized quote, click here.