Why Your MI Home is Insured for More Than You Can Sell It: Understanding the Insurance to Home Value
You may need to understand that is what is would cost to rebuild your home if something were to happen to it.
So, in reality, while your home can’t sell for that much, it would cost that much to replace it.
There are also many factors to consider when it comes to how an insurance company, like Safeco Insurance, comes up with the reconstruction value of a home.
Here is how you can figure out your insurance to home value.
- Square Footage of the Home
Your home is insured for more than you can sell it for and that’s determined by the square footage.
The size of your home can have a lot to do with how much its reconstruction value is.
Here’s a blog post, that explains the steps to calculating your home square footage.
- Materials the Home is Made of
This may seem weird, but your home is insured for more than you can sell it for because of the cost of materials.
When it comes to replacing the interior and exterior of the home from scratch, this can add up quite quickly.
Think about this too, rebuilding is way different than buying.
So, the cost of labor and materials needs to be added into the value of the reconstruction of your home.
- Personal Belongings in the Home
One of the biggest reasons that your home is insured for more than you can sell it for is because of your personal belongings.
It will cost quite a bit to replace every single thing in your home and the insurance company knows that.
It’s better to be safe than sorry in this instance.
This is a big part of the insurance to home value.
The coverage of insurance on your home is super important.
If something were to happen to your home, you would want to make sure it was completely rebuilt to your standards.
Which is why insurance companies are so thorough when it comes to doing an insurance quote on your home.
Here are some things to keep in mind when an insurance agent is looking at your home to give you a quote:
Like mentioned before, accuracy is super important.
Without an accurate estimate, your home insurance could be in vain.
- Understand the value of good insurance
When it comes to choosing a home insurance, keep in mind that you only have one chance to get it right.
To sum things up, it’s important to know WHY your home is insured for more than you can sell it for.
It is a little thing called, “insurance to home value”
Also, when choosing an insurance agent/company, keep accuracy and value in mind.
In doing so, we ask you keep Mahar Insurance for a competitive quote.
Would you add anything to this list?
Let us know if you finally understand what the insurance to home value is and how it works.