Why is my home in Jacksonville insured for more than its market value?

Why is my home in Jacksonville insured for more than its market value?

When you look to buy home insurance, it’s important to look at how much you’re going to insure your home for. There is market value, which is based on the current market. Then, there is replacement value, which is based on what the actual cost would be to replace your home.

Protect Your Home

You want to protect your home, which is why you buy home insurance in Jacksonville to begin with. If you fail to cover your home in its entirety, it will result in you having to pay more out of pocket in the event you encounter a problem.

If there is damage that requires you to file a claim, insurance will pay up to the value in your policy. If you have market value, they are going to look at what the value of your home is based on the market. When you have a lot of expensive interior upgrades, the market value might not be sufficient to make all of the repairs based on the replacement value. This is why your home is often insured for more – it offers you more protection.

Determine Value

You can always choose to have your home valued. An insurance adjuster or individual party can come out and tell you what your home is valued at based on market value. Then, you can talk to another third party to learn what the replacement value of your home is based on the individual features that you have in your home.

You might be surprised by how much the difference is between market value and replacement value.

Ultimately, it’s the replacement value that will really matter when you’re looking to make repairs and get your home back to its original condition after a natural disaster has taken place.

Get the Right Coverage

You need to make sure you have the right coverage on your home. For this to happen, you need to rely on the expertise of an insurance agent. An independent agent will not work for one specific company. Instead, they’re going to have your best interests in mind at all times. They will tell you whether an insurance company is insuring your home based on market value or replacement value.

They will also help you to determine how much your home should be insured for. This will make it so you don’t encounter problems when you go to file a claim. There’s nothing worse than being told you have $10,000 to make repairs when the cost of the repairs will easily cost $15,000.

Find an independent insurance agent that you can rely on. They’ll walk you through valuing your home so that you get a home insurance policy in Jacksonville that you can rely on year after year.