Figuring out what to insure your home for can pose a challenge, especially when market values, taxable values, and construction costs all seem to differ. We’ve provided answers to some of your commonly received questions below:
What is my home worth? Market value versus reconstruction costs.
Many homeowners equate the “worth” of a home to its market value, especially if the home was a recent purchase. While market value is a valid calculation of a home’s worth for buying and selling, it has little to do with the cost of rebuilding. The estimate you are providing is the amount to reconstruct the home at today’s costs.
Why is reconstruction cost more expensive than new construction?
Rebuilding a home includes many factors and expenses not considered in new construction.
Jon Jepsen, CIC