Check out why your home insurance value differs from your market value!
You’re the king (or queen) of your castle. You want to do anything in your power to protect your home, so you need to purchase homeowners insurance. Your policy helps to cover damages to your home in the event of a disaster. From replacing personal possessions, to rebuilding your home from the ground up, your policy is there to keep your home safe. However, in some cases, you may be paying to insure more than the market value of your home. Don’t be alarmed; there is a method to the madness. Learn why your homeowners policy insures your home for more than its market value.
The Market Value and Rebuilding Costs Are Different.
It all comes down to perspective. Depending on which perspective you take, you may come up with different values. Selling your home and rebuilding your home are based on entirely different factors. To sell your home, your realtor helps you come up with a sales price based on your home’s history of tax assessments, appraisals, and trending prices throughout the neighborhood. When it comes to rebuilding your home, the cost is determined based on materials, local labor costs, square footage, and any special features in your home. Sometimes these two costs don’t match up. In some cases, the rebuilding costs are higher than the market value, which is why you’re insuring your home for more than it’s worth.
The Importance of Homeowners Insurance.
You need homeowners insurance to avoid paying for damages out of pocket. Homeowners Insurance gives you necessary safeguards so that you have the luxury to rebuild your home if necessary. Find a policy that gives you enough coverage to rebuild and then some. That way you can rest assured that your home is well protected.
When it comes to your homeowners insurance, know that you’re getting the right coverage. Protect everything from your flatware to rebuilding costs. Contact the professionals at Gant Insurance Agency in McKinney, Texas for all your personal and commercial insurance needs.