INSURANCE - Mesa Real Estate Arizona

Understand The Difference Between Market Value And Replacement Value: As you examine your real estate property insurance coverage (hopefully yearly at minimum), be aware that although some homes' market values are shrinking, the replacement value of homes (also, "insured value") is continuing to rise. The market value and replacement value of a home, generally speaking, are not related to each other. -> Market value is the price at which your home would sell if you were to list it for sale today. The market value is based on what features your home has, the size and location of your home and what home buyers are paying for similarly equipped homes in the area. -> Replacement value is what it would cost to rebuild your home in its current location with comparable construction materials. To replace your home, building materials such as lumber, steel, concrete, copper, etc. are needed, and the price of these items has increased dramatically over the last few years. Beware that if your policy's replacement value is too low and your home were damaged and declared a total loss, your replacement home may not be of the same quality and/or size as the original. If you have any questions about the insured replacement value of your home, give your insurance agent a call. If you need a market-value estimate, message us! For more information, please visit our website.