Insuring home to value

Get “sold” on the idea!

Why do I need to insure my home accurately?

Should your home be destroyed or seriously damaged, failure to accurately insure your home can delay the processing of your claim and in some cases, result in insufficient funds being available to properly rebuild your home.

Can it really cost more to rebuild my home than what I could sell it for?

Real estate value reflects factors such as market conditions, location and lot size. Rebuilding costs not only include the actual cost to re-build your home, but also must include the cost of emergency services, debris removal, architecture/design fees and permit fees. In summary, building a new home in a subdivision is far

more efficient and economical than building a custom, single home after a major loss like a fire. Depending on real estate market conditions, it is not unusual for the rebuilding cost to exceed the real estate resale value.

What is guaranteed replacement cost?

If you and your broker make sure your home is accurately assessed, and you keep your insurance carrier advised of any significant changes to your home (for example, additions or major renovations such as a new kitchen) then your home will be insured to the value your insurance carrier requires. If, in the event of a claim, the cost to rebuild your home exceeds the limit of insurance, Guaranteed Replacement Cost protects you, meaning your insurance carrier will cover any additional costs to rebuild.

When it comes to insuring my home, what is the most important thing I can do to protect myself and my family?

It is critical to keep your insurance broker fully informed with respect to your home. By insuring your home properly during these tough times, you and your family can avoid financial disaster in the event of a major loss.