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Replacement Cost Coverage

Value of replacement cost coverage proven at claim time

Few first-time homebuyers may be as intent on understanding their property insurance policy as a young woman I met last week. I was impressed. She understood the importance of insuring to the home’s reconstruction cost, yet she was stumped on the way coverage worked for the home’s contents.

The value of understanding appraised value, market value & insurance value

If you matched your property’s insured value to today’s real estate value, you will be underinsured. If you matched your insured value to real estate value before the housing bubble burst, you would have been overinsured. Yes, it’s really that simple. And yet…..people are confused by the difference between appraised value, insured value and real estate value. The wider the gap between those three numbers the greater the confusion. So, let’s start at the beginning.

Non-catastrophe losses up 80% in Florida; replacement cost law blamed

Florida is the only state that requires insurers to pay full replacement cost to policyholders without requiring them to repair their property or replace any of a home’s damaged contents. That is driving up the cost of insurance for all of us.