Replacement Cost vs. Market Value

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What is Full Replacement Value

One of the biggest questions consumers have regarding homeowner’s insurance revolves around the amount of insurance to have on their home. Many assume the amount of dwelling coverage will be equal to the amount they paid for their house. That is not always the case.

There are different methods to determine the value of a house. Market value is the price paid for your house. Replacement cost is the price or cost it will take to rebuild your house in the same spot, same size and same quality of construction, at today’s costs.

Insurance carriers insure homes for full replacement value, not the current market value.

Please check out this article for more insight and become better educated on homeowner’s guaranteed replacement coverage.

For more information, call us at 203-637-1006 and we will connect with one of our advisors.

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