Estimating your home value will help make sure you have enough insurance. The primary factors that will determine the cost to rebuild your home include:
wLocal construction costs and the square footage of the structure
wThe type of exterior wall construction -- frame, masonry (brick or stone) or veneer -- and the type of roof
wThe style of the house (ranch, colonial)
wThe number of bathrooms and other rooms
wAttached garages, fireplaces, exterior trim and other special features like arched windows
Here are some tips to help you estimate the value of your home:
wEvery year, take the time to check the value of your insurance policy against rising local building costs. Your Farmers agent is available to review your coverage and ensure adequate protection is in place.
wCheck the latest building codes in your community. If your home is severely damaged, you might have to rebuild it to comply with the new standards requiring a change in design or building materials.
wDo not insure your home for the market value. The cost of rebuilding your house may be higher (or lower) than the price you paid for it or the price you could sell it for today.
wSome banks require you to buy homeowners insurance to cover the amount of your mortgage. Make sure it's also enough to cover the cost of rebuilding.
wIncrease the limit of your policy if you make improvements or additions to your house. You may upgrade features in your home to fit your tastes and lifestyle. These enhancements can significantly increase the replacement cost of your home.
If you have questions about the right amount of coverage for you, consult Danners Insurance.
