Replacement Cost or Market Value: What’s the Difference?

Pop quiz: Which affects the cost of your insurance policy: your home’s market value or replacement cost? The answer: replacement cost.

What Is Replacement Cost?

People think that home insurance should match their loan amount or what the real estate market deems their home is worth. If your home were destroyed, your home insurance coverage should  be for replacement cost, or how much it would cost to rebuild your home. After all, that’s what home insurance is for: leaving you whole in the event of a total loss.

How is Replacement Cost Calculated?

Replacement cost, or sometimes called dwelling coverage, protects all structural elements attached to your home. This includes but is not limited to:

  • Framing of the home
  • Roofing
  • Fireplaces
  • Plumbing, electrical and HVAC systems
  • Bathrooms
  • Kitchens
  • Attached structures such as a garage or deck
Increasing Your Protection is Easy

There are a lot of endorsements that can be added to your home policy for minimal extra cost that can protect one of your biggest assets- your home. Above all, we want our clients to have peace of mind that they are being protected from financial disaster. That’s what we do best at Cincinnatus Insurance!

Do you have enough dwelling coverage to rebuild your home today? Contact your Cincinnatus Insurance advisor to quickly review your policy.

Would You Like Us To Review Your Policies?

Request Your Proposal Here

Are you ready to save time, aggravation, and money? The team at Cincinnatus Insurance LLC is here and ready to make the process as painless as possible. We look forward to meeting you!

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