You're getting ready to purchase a home insurance policy, but you're not sure how to interpret all the coverage and options. If there is anything you need to understand most, the most important component of your home insurance policy is the homeowners insurance replacement cost estimate.
Homeowners must realize that the home insurance replacement cost and the market value are not the same. Your home insurance replacement costs do not need to account for the land under the foundation, and the raw materials may change at a different rate than the market value of your property. Below are some items to help you understand this important input value to your premiums.
"Replacement cost" is the amount needed to rebuild the home to its pre-loss condition. The replacement cost of a home is NOT the market value of the home, its purchase price or the outstanding amount of any mortgage loan and does not include the value of the land. "Market value" is the amount a buyer would pay for a home, including the land, regardless of how much it would cost to rebuild the home.
When you are purchasing a new home, you will also be purchasing a new home insurance policy. When you get your appraisal completed, see if a replacement cost estimate is also available. You need to be confident that you have the right coverage on your new home. You can also consult with a local contractor or building association. Your IronPoint Insurance agent can also assist you with this calculation. Don't speculate and don't let your agent take this estimate for granted.
There are items, other than economic changes in the marketplace that can influence your home insurance replacement cost values. Make sure you are aware of them and update your coverage replacement cost amount when needed.
Call today and speak with a professional insurance agent.
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IronPoint Insurance Services is an independent insurance agency licensed (#0G87821) with the California Department of Insurance. We are authorized agents for many A+ rated Arizona, California and Utah insurance companies. We provide consumers with online, phone, and in-person insurance services through our insurance company relationships. IronPoint Insurance Services, LLC offers multiple insurance quotes to provide consumers several options for their insurance products. We offer auto insurance through Mercury Insurance Group, Travelers Insurance Companies, The Hartford, MetLife Auto & Home, and Progressive Drive Insurance. We are authorized insurance agents for these companies and do not charge any fees for our services. If an IronPoint insurance agent trys to charge you broker or agency service fees for representing these companies, please contact us immediately.