New to Home Owners Insurance?
How much should I insure my home for?
The amount of coverage listed for your home will likely be different than what your new home purchase price, listings you find on online valuation websites or how much you owe on your mortgage.
Listed on your policy as “Coverage A – Dwelling” or “Dwelling Coverage”, insurance to value (ITV) is the estimated amount to rebuild your home completely.
How is the insured value determined?
ITV is independent of factors like the local real estate market, school districts, state of the economy or taxes which have nothing to do with the cost of rebuilding your home and replacing its contents. Even if your home is brand new, rebuilding a home comes with costs that are often higher than new construction. Things like demolition and removal of the previous structure will add costs not included in your current valuation.
Luckily home owners are not on the hook for tracking down lumber and labor prices or calculating how many shingles to buy. One benefit of working with independent insurance agents is access to top resources from industry leading insurance companies. The Milburn Agency relies on years of experience to provide sound advice along the way to help customers with this decision. Make sure to discuss with your agent unique features or materials like hand carved woodwork or upgraded appliances that would add to the cost of replacement. Notify your agent of major improvements like a new addition or kitchen upgrade so an adjustment can be made.
Whether you are purchasing new construction or a “new to you home” we can help with questions like “how much should I insure my home for?”. Give us a call