For most people, buying a house is biggest investment you’ll ever make. Protecting your investment is important, but it can be challenging to determine how much coverage you need to replace your home if the unthinkable happens.
Home Replacement Cost and Homeowners Insurance
Your home should be insured for at LEAST 100% of its estimated replacement cost. It is impossible to predict what the exact replacement cost will be in the future, so by purchasing a policy that covers more than 100% of the replacement cost you can protect yourself from any unforeseen circumstances down the road.
Replacement Cost vs Market Value
Market Value is sometimes confused with Replacement cost.
- Market Value– is the amount a buyer would pay for the home and the land it rests on.
- Replacement Cost is only the amount it would cost to rebuild the home.
How to Find Replacement Cost
The easiest way to determine the replacement cost of your home is to call (847) 487-5700 and ask for Jon Halvorsen, our homeowners insurance specialist. He will walk you through the steps and use our software to provide you with an accurate replacement cost estimate. Use the links below to get a better idea of what information we ask about:
*Click on the links above for complete definitions and details.
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