Have you ever wondered why your home is insured for more than it is actually worth on the market?

This is because the Market Value of your home is the price one would pay for a home in its current condition.  Insurance companies use what is called a Replacement Cost Value, this is the price it would cost to rebuild your home in the same location, same size and same quality of construction at today’s building costs.

Market Value = Used materials, Replacement Cost = New materials