What's the difference between market value and replacement cost?
Replacement cost is the amount it would cost to rebuild a home from scratch. This figure includes factors like similar materials, degree of craftsmanship, roofing costs, exterior features, heating and cooling systems and more. Non-material costs are considered as well, including the costs of permits, fees, debris removal, contractor labor, overhead and profit.
Market value is the amount for which a person would sell his or her home. This is calculated by more factors such as neighborhood, home values around you and the real estate market.
By making sure your home is insured for its replacement cost, you will be getting coverage you truly need should you ever suffer a total loss.
Resources:
What's the difference between market value and replacement cost?
Replacement cost is the amount it would cost to rebuild a home from scratch. This figure includes factors like similar materials, degree of craftsmanship, roofing costs, exterior features, heating and cooling systems and more. Non-material costs are considered as well, including the costs of permits, fees, debris removal, contractor labor, overhead and profit.
Market value is the amount for which a person would sell his or her home. This is calculated by more factors such as neighborhood, home values around you and the real estate market.
By making sure your home is insured for its replacement cost, you will be getting coverage you truly need should you ever suffer a total loss.
Resources: