How do you value your home? It’s a simple question with a few possible answers. A large part of homeowners will say their home’s value is how much it’s worth in the real estate market. This valuation is known as market value—the amount a willing buyer will pay the seller.
Market value is dependent on a lot of external factors, such as a home’s location, condition and updates, appeal, and timing of the sale. The last item is particularly relevant in today’s market. Interest rates have risen to decade highs and home inventory remains low. Compare this to last summer when interest rates were much lower and a new home listing could sell within hours.
Insurance companies look at homes from a different perspective. A Virginia homeowners policy looks at the replacement cost—the amount it takes to rebuild a home with the same quality and without depreciation. Basically, if your home was a total loss, insurance companies want enough insurance to rebuild your home regardless of what you paid for it. In some cases you can have more coverage than the replacement cost of your home, but not less. A typical endorsement on a homeowners policy is extended replacement cost coverage, which can add extensions of 25% or 50% to your underlying coverage.
We’re Proud To Be An Independent Agency.
At Dove Insurance Agency we calculate the replacement cost of your home. Even if you have an older or renovated home we can help ensure that your property is covered for the replacement cost value.
By representing multiple insurance companies across the country, we are able to help you find the right coverage options for your needs. That means we can compare coverage and rates to help you secure a policy that works for you, giving you the power of choice when it comes to protecting the important things in life.
Multiple insurance carriers and coverage options for you Home–including mobile homes, vacation properties, rentals and vacant properties.https://t.co/c0xoZYdLzg
— Dove Insurance (@DoveInsurance) June 20, 2023
