IF YOUR MARKET  VALUE OF YOUR HOME HAS DROPPED, SHOULD YOUR HOME INSURANCE PREMIUM DROP ALSO?

FACTORS THAT PLAY INTO REBUILDING:
Your insurance premium should cover the cost of building a new home from scratch. Thus this has nothing to do with the sale value of your home. When they rebuild a home they use specialized labor crew and they would remove any debri necessary which can be 10% of your dwelling structure. Also, the original house was built with the discount of being built with many other houses in a subdivision.


Other examples that would raise the cost to rebuild are construction cost,inflation, building code updates, and any unusual materials or special features.

SIMILIAR COVERAGE, FUNCTIONAL REPLACEMENT VS.,REPLACEMENT COST.( KNOW THE DIFFERENCE).
Many policies today do not cover true replacement cost and most people never really read the fine lines entailed in their policy or on the declaration page of their policy.

Similiar coverage means they will find similiar materials not necessarily the “same” materials to rebuild your house.
Example. Brick would be brick veneer.
Plaster  replaced with dry wall

Functional Replacement means they will find cheaper materials to fix up your house.
ex. wooden floors could get replaced with vinyl floors-not the real stuff.
Wall to wall carpeting over wooden floors would be replaced with plywood for the wooden floors but give you the money for the carpeting.

THINGS TO DO TO BE SURE YOU HAVE ENOUGH!

1. Read your policy

2. Have an annual review with your current agent to make sure your coverages are up to date.

3. Tell your agent if you have done any remodeling or additions to your home.

4. Schedule important jewelry

If you have questions pertaining to your policy, please contact me. I would be happy to do a free evaluation of your coverages.

Thanks, Jeanine Devine