Brown & Brown - Fort Lauderdale
1201 W. Cypress Creek Road, Suite 130, Ft Lauderdale, FL 33309
Ph: 954-776-2222 | Fax: 954-776-4446
It's not just a house - It's your home.
The answer depends on your reason for asking. When buying a home, you want to know the Market Value, and any realtor can estimate that. When you are insuring your home, however, using your Market Value to determine coverage could be a serious mistake. If a covered loss occurs, you'll probably be rebuilding, not buying. Replacement, or "Rebuilding", cost is the correct basis for determining the right amount of coverage for you.
Comprehensive Replacement Cost appraisals are important
Without a comprehensive Replacement Cost appraisal, many of America's finest homes may be underinsured. The shortfall for fine homes can be anywhere between $200,000 and $1 million, or even more. Market Value-based coverage can make it worse. Falling market values can tempt some homeowners into lowering their coverages, but rebuilding costs may not follow the fluctuating market values. In fact, repair and rebuilding costs are steadily rising country-wide.
In challenging economic times, many homeowners see only their monthly bills. They think of insurance as an expense that should be minimized. Smaller plans can be an acceptable trade-off for some, but are they right for you? Cut-rate insurance has hidden dangers, which are no less real because they're difficult to notice. Weigh them carefully against the few dollars you'll save on a single year's premium.
Homeowners insurance covers a large variety of losses, but sometimes it may not be enough. Most homeowners need additional protection from lawsuits, and extra security for their valuables. It's important to recognize the difference, and consider getting coverage for personal collections and other valuables that your homeowners policy may not cover.