Home insurance is based on the cost to rebuild and replace your home, not its market value.
While market value is the amount your home is worth on the housing market, your home insurance coverage limit is based on the estimated cost to rebuild your home: the cost to repair, rebuild or replace what you had before, using materials of similar type and quality.
Replacement cost is the amount it would take to repair, replace, or rebuild your home at current prices of construction materials and labor. When you insure your home for its estimated replacement cost, you help to ensure you have the coverage you need to repair or rebuild if it is damaged by a covered loss.
Market value is the amount your home is worth on the housing market.
Your home insurance amounts are based on its estimated replacement cost, or the cost to rebuild, and not the amount it would sell for on the housing market.
Travelers wants to help you rebuild and replace what you had before. Coverage limits are reviewed annually and estimated using a number of factors. Depending on market conditions and any upgrades you may have made, coverage amounts may need to be adjusted.
Coverage limits need to keep up with rising inflation. This is an industry-wide issue. As mentioned above, many factors are considered when estimating your coverage. One of these factors is reconstruction costs. Reconstruction costs have risen steadily since our last assessment.
We think you will find that Travelers continues to compare favorably with other carriers, offering outstanding coverage and claim service.
If you would like to discuss your dwelling value further, please feel free to reach out to our agency.
Start a quote by filling out our online application providing us with the basic information we need to perform a quote. It only takes a few minutes and we'll respond within one business day.
Start a Quote Online Contact UsHome insurance is based on the cost to rebuild and replace your home, not its market value.
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homeDarnielle Insurance is available to answer your questions. We are located at 1320 28th Street West, Billings, MT 59102. Give us a call at 406-652-4180.