There are unique situations in which replacement cost valuation would not be the preferred method, talk with your agent. The goal is to provide accurate information to adequately secure the assets of the client. Homes valued at greater than $750,000 can include a more detailed interior/exterior survey. While it depends on the carrier, typically homes valued between $300,000 – $750,000 get an external survey. The higher the home value the more extensive the survey. Residential Home Survey – Some carriers will complete on-site home surveys to determine an accurate value. It will pay above any value listed on your policy with certain conditions being met. Guaranteed Replacement Cost Endorsement – This endorsement provides reconstruction of your home with like kind/quality – guaranteed. Your Agent – Your agent will review the valuation estimations of multiple carriers and can help get you comfortable.ġ25% Increased Cost Endorsement – This endorsement provides wiggle room for reconstruction of up to 125% of the insured amount listed on your policy. Is my home valued correctly? Here are some things that can help you: This is because most standard products are meant to restore an insured to a condition similar to what they were in before the claim. While you may be “OK” to rebuild a home to that of less quality or square footage an insurance carrier wants to insure a home as accurately as possible to the rebuild value. These values can vary from carrier to carrier and it is important to understand. To calculate these values insurance carriers use building valuation software to project the cost to rebuild your home. With some exceptions, if you have an older home chances are it costs more to rebuild your home than it was to buy your home. Market Value – The amount you can sell/buy your home for. Replacement Value – The amount it cost to rebuild your home. Insurance companies want you have a replacement valuation on your home, not a market value on your home. Why do I need to insure it for $450,000?” Part I – Personal Lines | Homeowners Insurance
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |