Why is my home insured for more than what it is worth?
That is a common question we get in the insurance world.
The answer is relatively simple, insurance is meant to make you whole again (indemnify) after a home insurance loss. In this case the only way to make sure you are properly insured is through calculating the cost to rebuild your home and not calculating the market value of the home.
What is replacement cost for my home?
Replacement cost for your home is the amount of money it would take to rebuild your home using similar quality construction and materials in today’s construction market.
How is replacement cost determined?
The replacement cost of your home or known as dwelling coverage on your declaration page is carefully calculated through information you provide us. We enter information about your home into a cutting edge replacement cost estimator and it provides us with a dollar amount using today’s cost of materials and labor to determine the cost to rebuild your home.
Where do you get the information about my home?
Whenever you are getting an insurance quote for your home insurance we will ask you about your home. Some of the details include information about square footage, number of bathrooms, style of home, and any unique or additional features. This information can often be obtained online through the local assessor’s office. We will often pull up your home’s information online and verify the details with you.
Does Spalding Insurance Agency share the replacement cost estimator with me?
Yes, it is our practice to share the recently completed replacement cost estimator with you to make sure that all information appears accurate to the best of your knowledge. This way we can be sure that your home is being covered adequately.
Keep in mind that your home insurance is insured for the cost to rebuild your home not the cost on the open market.
About Spalding Insurance Agency
Spalding Insurance Agency provides exemplary service and access to Michigan's finest insurance companies. We proudly serve the personal and business insurance needs of people in East Lansing, Okemos, Haslett, Lansing, DeWitt, Perry, Detroit, Holt, Mason, Grand Rapids, Laingsburg, Bath, and other great Michigan cities. For a quote on auto insurance, home insurance, business insurance, or life insurance click here.
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