Learn Why You’re Insuring Your Home for More Than It’s Worth

Why You're Insuring Your Home for More Than It's WorthFind out why your home is insured for more than it is worth.

Home insurance is a necessary safeguard to protect your property from damage and destruction. However, such protection doesn’t always come cheap. Sometimes the coverage you’re getting is worth more than the market value of your home. This is because there’s a difference between the value of the home and how much it costs to rebuild your home.  Learn why you home is insured for more than the market value of your home.

Market Value vs. Rebuilding Costs.

There are different values associated with your home’s worth. When selling a home, a house’s value is determined by factors such as appraisals and home values around the neighborhood. However, a home’s rebuilding costs are based on how much it would cost to rebuild a home from the ground up. In most cases, the values don’t match up, which means that you need to pay extra attention when getting adequate coverage for your home.

Reconstruction Costs to Consider.

If you ever needed to rebuild your home, there are lots of factors to consider. You would need to think about the square footage, the type of materials used in your home, what special features are in the home, and how much construction costs are in your neighborhood. Take into consideration everything that you’d need to rebuild your home.

Homeowners Insurance Coverage.

When it comes to your coverage, know that you’re covered with enough insurance. Update your policy annually and verify that you have enough to rebuild your home.

Know that your home is protected and choose a home insurance policy that gives you enough coverage to rebuild your home. Panzera Insurance Agency, Inc. can help you find the right policy! We serve all your insurance needs, so contact us for more information.