Check out what to know about home insurance and the market value of your house.
You need insurance to protect your home. It helps to keep your personal property safe from destruction, and it helps you to repair and rebuild your home. However, sometimes the amount that you’re paying to insure your home is more than the market value of your home. While it may seem odd, it’s a common occurrence, and for good reason. Check out what you need to know about why the market value and insurance value don’t always match.
Market Value vs. Insurance Value.
There are multiple ways to measure the value of your home. However, more often than not, we rely on the market value. This value is the amount that you can get for selling your home. It’s a number determined by appraisals, tax assessment records, and the present supply and demand conditions in your neighborhood. While it’s a common way to judge the value of a home, insurance companies look at the value of your home a little differently. Insurance companies seek to determine how much it will cost to rebuild your home from the ground up. The insurance value is dependent upon the building materials, special home features, labor costs, and other factors that go into building a structure.
When insuring your home, it’s important that you have what you need to coverage your whole home. Often times homeowners are left with costly insurance gaps that require them to pay hefty sums out of pocket. Ensure that you have enough coverage to rebuild your home in the event of a disaster.
Find out what you need to know about insuring your home. Get the right homeowners insurance so that you have the resources to rebuild from the ground up. Contact the professionals at Gant Insurance Agency in McKinney, Texas for all your personal and commercial insurance coverage needs.