Determine Your Homeowners Insurance Replacement Cost

Use Quotes To Save Home Insurance Replacement Cost Policies

By Meha Ahmad, InsuranceAgents.com Staff Writer

There are two different kinds of homeowners insurance policies: a cash value policy and a homeowners insurance replacement cost policy. A cash value policy, while cheaper, doesn’t provide as much coverage as a homeowners insurance replacement cost policy. If you’re more concerned about coverage and property protection then a homeowners insurance replacement cost policy may be right for you. To find a policy that offers the coverage you are looking for at a low price, use our quickonline quote comparison service for homeowners insurance quotes.

Find Homeowners Insurance Replacement Cost Coverage

If you’re looking for an insurance policy that will financially restore all of your personal belongings and your property, then look no further than a homeowners insurance replacement cost policy. A homeowners insurance replacement cost policy is the only kind of coverage that will cover the complete rebuilding of your home. It will also replace any of your destroyed/lost personal belongings for its full worth, and will not include depreciation.

Determining Homeowners Insurance Replacement Cost

1. Know the formula. To find the right amount of homeowners insurance replacement cost coverage, you’ll want to know how to do the math. The cost to replace your home, including construction costs can be determined by this formula: Square footage of your home multiplied by local building costs per square foot.
2. Consult a professional. Contact your homeowners insurance agent and/or an appraiser to help you find the cost and value of your home. They will be able to determine how much your home would cost to rebuild.
3. Insure your home for its worth, not cost. Your homeowners insurance replacement cost policy may just cover the amount that you paid for your home. If so, correct this mistake immediately. Your personal cost and the home’s worth are two different things. You may have made improvements to the structure that would make rebuilding it cost more, or local construction costs may make rebuilding expenses higher than what you originally paid for the property.
4. Review your policy. Look over your homeowners insurance replacement cost policy. Does it provide enough coverage to completely rebuild your home, in the event of total destruction (from a fire or other disaster)? Make sure your policy includes local construction costs. Have an agent help you customize a homeowners insurance replacement cost policy so that it is free of coverage gaps.

Getting Low Cost Coverage

Typically, homeowners insurance replacement cost policies are more costly than actual cash value policies. That’s because with an actual cash value policy, your provider gets to pay you less than you invested in your home, belongings, and other property. But just because the better coverage costs more, that doesn’t mean it has to be expensive. You can still find affordable homeowners insurance replacement cost policy by using our simple online quote forms and compare multiple home insurance quotes in your area.

Published: Friday 18th September 2009