I bought my house for $300,000 and need how much insurance?
In today’s real estate market (August 2009) many homes are selling for less than what it would cost to build in the first place. In fact, the price you paid for your home and the cost to re-build it after a fire is rarely the same. Remember a few years ago when there were multiple offers, bidding wars and prices seemed to be on a perpetual upward climb? In those days you could pay $200,000 more than it cost to build!
On your Homeowner’s Insurance policy, the Dwelling coverage (Coverage A) is the key to everything. Here are some things to remember:
- All of the upgrades in your home should be considered, like marble counters, wood floors, and appliances. The higher the value of these things, the more it will cost to replace them.
- Even if your home is a tract home, after a fire it is a custom home. Custom homes cost more to build.
- A home-builder can build 1,000 homes at a much cheaper cost per house than your single house will cost to re-build after a loss.
- After a fire the contractors must first demolish and remove the old materials before they can build. This cost is included in your limits!
The best way to decipher the right amount of coverage is to talk to a very good insurance agent, which is what you get when you call Purves and Associates Insurance Agency. Please call us today 800.681.2025, or click here to visit our site, and let us walk you through the right coverage and then shop all the best carriers for you!
