Do you ever wonder why your home is insured more than it’s worth?
Perhaps when renewal time comes around and you receive that summary in the mail of your homeowner’s policy, you get confused and agitated, wondering if your agent has made some sort of mistake!
Well, before you decide to fire your agent, let us tell you that you can’t compare the insured value to the market value.
Most homeowners’ policies are written to protect the cost the rebuild. The best option you can select if it’s available is “guaranteed cost replacement”.
This means regardless of the cost to build versus the insured value, the insurance company will ensure you are put back whole. Remember, it is specific to your policy – so it is important to ask your agent about this option.
So next time you receive those policy documents in the mail, remember that your home is insured for the cost to rebuild not the market value.
If you have any questions regarding your homeowner’s policy, or would like an insurance review, give Clevenger Insurance a call today at 574-267-2181.