One of the most common, and costly, home insurance mistakes is insuring your home for its market price. The number that should set your coverage is the cost to rebuild, not what your home would sell for.
Replacement cost vs. market value
Market value includes your land and location, which do not burn down in a fire. Replacement cost is what it would take to rebuild your home with similar materials and labor. Insuring to replacement cost is what makes sure you can actually rebuild after a total loss.
Getting your dwelling limit right
- Estimate the rebuild cost with your agent, factoring in current Utah material and labor prices.
- Add an inflation-guard so your limit keeps pace with rising costs.
- Consider an extended replacement-cost endorsement for extra cushion.
Do not forget the rest
Make sure your personal property is covered at replacement cost (not depreciated value), and that your liability limit and deductible match your situation.
Not sure your coverage is enough? Review your home insurance or compare your quotes online with us today.