Insurance to Value
Homeowners insurance premiums are not based on the current resale value of the homes, but on the cost to replace them. As housing prices plummet, the cost to rebuild a home is on the rise. Reed Construction Data estimates an increase of 4.2% on construction costs from 2007 to 2008, up from the 2.8% estimate from 2006 to 2007 for the same period.
Insurance to value is important because it allows homeowners to have adequate premiums and have adequate reserves to pay claims. Consider if your home is insured to value and give us a call today.