Why would you insure your home for more than you paid for it?

Insist on Guaranteed Replacement Cost coverage and always ‘Insure to Value’

Many people mistakenly believe the amount they paid for their home is the same as its replacement cost. Unfortunately this is not always true.

Depending on where you live, the cost to rebuilda total loss home can be significantly more thanits market value.

Some of the factors that drive up rebuilding/reconstruction costs include:

Urgency – Property losses are not planned likea new construction project. When they do occur, there is a need to rebuild as soon as possible. This means the cost of labour, materials and otherservices required are often significantly higher.

Demolition and Debris Removal – Major losses, require the removal of partially damagedproperty and debris. Costs increase if there are environmental issues such as soil contamination.

Current Building Codes – New and more demanding building codes may need to be met when rebuilding or restoring a damaged home.

Worksite Access and Collateral Damage At reconstruction sites there is typically less roombecause of debris, landscaping, fences and otherbuildings in the vicinity. This causes more work and material storage to be done further away fromthe site, thus extending the project time and cost. In some cases, physical access requirements result in collateral damage to existing propertyon and beside the insured’s property.

It’s easy to see how the cost to rebuild your homecould be much more than you paid for it.

Don’t get caught in a situation where your loss exceeds your coverage limits. We can provide you with advice to help you determine the correct amount of insurance you need on your property. And, we’ll recommend coverages like Guaranteed Replacement Cost coverage.

It’s wise to re-evaluate your home’s replacementcost every 5 years to reflect changes in the cost of construction, including building materialsand labour. And, if you’ve made any recent renovations, upgrades or alterations to your home, we can help you established a new replacement cost value.

If you have any doubts, please contact us.

We’ll help you insure your hometo its proper value.

Contact Us if you have any questions or click here for a pdf of this page.