Why You Should Consider Guaranteed Replacement Cost Home Insurance

A house is the single largest investment most people ever make, which makes it a key component of their financial portfolio. For that reason, it is crucial that any homeowners policy in effect will do what it is intended to do: cover the cost of replacing a home if it is destroyed or damaged beyond repair. Adding guaranteed replacement coverage to your policy helps ensure this.

Purchase Price vs. House Value

When you bought your house, you probably had an appraisal done. For many homeowners, that is the last time — at least for a while — they think about the home’s value. However, markets can fluctuate and, over time, house values have historically increased. In some areas, prices have doubled or tripled in a very short timeframe. If your insurance policy is based on the purchase price, you may not have enough coverage to cover the current market value.

Variable Construction Costs

Construction costs are not stagnant. They rise and fall with the rest of the market. Consequently, a rebuilding estimate from five years ago may be completely off the mark today. If your policy is based on an old estimate, you may not have enough coverage to rebuild. Increased demand and reduced supply after a major disaster and rising employment costs in construction trades are just a few of the things that tend to affect construction costs.

Guaranteed replacement coverage fills the gap between your standard policy’s limits and the actual cost to rebuild. With it, you won’t have to worry about rising construction costs or increasing home values.

The Truth About Home Insurance

The Truth About Home Insurance

Home insurance is one of the most important investments when you’re a homeowner. This is your safety net. Without the right amount of Connecticut home insurance, you could lose a lot of money on your house. Knowing the myths can help you to learn what policies and how much insurance you need.

Home Insurance Is a Waste of Money

Home insurance is your safety net! You need to think about how much it could cost you if you have to rebuild your home. Accidents and natural disasters happen. You might not want to think about it, but having a lack of insurance is devastating.

Your Belongings Are Covered

Home insurance can protect your belongings. You do have to keep in mind, however, that some valuables might only have a small amount of insurance.

You Should Insure at Market Value

You do not insure for your home’s market value. Instead, you take every cost associated with the repair or rebuild of your home and you insure for those costs. Home insurance is crucial when you’re a homeowner. To find the right policies and to make sure that you aren’t underinsured it’s important to know the different myths about home insurance. You deserve to invest in Connecticut home insurance that you can trust.