09/02/2026
💡 INSURANCE INSIDER TIP: Replacement Cost vs. Market Value
Did you know the amount your home is insured for usually has very little to do with what you could sell it for?
Your home might have a market value of $180,000 but need $250,000+ in coverage to rebuild after a total loss.
Why? Because insurance is concerned with reconstruction cost: materials, labor, debris removal, contractor expenses, and rebuilding your home from the ground up, not what someone would pay for the house and land today.
🏠 Market Value: What your property may sell for.
🔨 Replacement Cost: What it may cost to rebuild it.
Those numbers can be VERY different.
This is also why simply asking your agent to “insure my house for what I paid for it” isn't always the best approach.
Insider Tip: If you haven't reviewed your dwelling coverage in a few years, especially after the increases we've seen in construction and material costs, it's worth taking another look.
That’s what we’re here for. Insurance shouldn't just be something you pay for every month. You should actually understand what you're buying. 😎