Property vs Reconstruction Value

With such a hot housing market right now, homeowners are curious to see what their property is worth. Of course, this does not always mean they will list their home for sale but will question if the insurance coverage they’re paying for is adequate for that home.

We want to make it clear, that your property value will not match your reconstruction value which is what your insurance coverage is based on.

Reconstruction value is the cost to replace or rebuild a home to original or like standards at current material and labor costs within a certain geographical area.

Meanwhile, a home’s market value is the price a consumer is willing to pay for the home considering additional factors like property location, schools and parks and current housing trends.

We hope this explains any concerns as to why your coverage and property value are different.

Should you have any questions please contact our Customer Service team directly at 1-800-234-2114 we are ready to assist you Monday through Friday 8:00AM to 4:45PM PST.

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