Your first step in determining the right homeowners coverage is estimating the replacement cost of your home. The second step is selecting the coverage amount that best fits your needs. We recommend that you purchase an amount of coverage equal to the estimated replacement cost. Determining your home's estimated replacement cost is important because this will ultimately determine which policy options are available to you. We have special software that helps us to calculate your house's estimated replacement cost.
When you experience a covered loss, your insurance company will pay the "replacement cost" of the damaged property up to the coverage limits. "Replacement cost" is the amount needed to repair the damage or 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. It does not include the value of the land, but is the cost of rebuilding your home. New improvements or required upgrades are also not accounted for in the replacement cost.
Your home's estimated replacement cost is different than its market value (real estate cost). Each time you remodel or improve your home, you should adjust your coverage amount accordingly. If your home is made of unique building materials, make sure they are reflected in your replacement cost estimate. Stay abreast of the fluctuating building costs in your area and update your coverage amount accordingly. Make sure that you maintain coverage at 100% of your home's estimated replacement cost at all times. It is important to review your coverage annually and inform your agent of any changes you'd like to make.
If your property lies in a flood plain as determined by US Government Flood Maps. Ask your independent agent about a flood quote.