Market Value vs Replacement Value - Know the Difference?

posted by Andrew Westendorf on Thursday, September 07, 2017

You could have too much or too little coverage if you are not taking these differences into consideration.

MARKET VALUE

  • Amount a buyer would pay for your home, including the land.

 

REPLACEMENT VALUE

  • Cost to repair or rebuild the entire home, including contractor fees, building materials, and other additional costs.

 

Keep in mind that both market value and replacement value can be quite different than the original purchase price or the amount owed on a mortgage.

Read the full “Know Your Insurance” document

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Andrew has been insuring personal, agribusiness, and small business clients since 2008.  He enjoys building lasting relationships with his customers and has a unique ability to create a personalized insurance plan for all of them.   Andrew, his wife S ... read more