How to Determine Replacement Cost for Your Home Insurance

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Determining a replacement cost for your home insurance requires you to look at things from a very particular perspective. Learn about how to determine a replacement cost for your home insurance with help from a public insurance adjuster in this free video clip.

Part of the Video Series: Home & Business Insurance
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Video Transcript

Hi. I'm Dan Odess. I'm a public insurance adjuster and I'm here to talk to you about how to determine replacement cost insurance for your home. Replacement cost insurance is a little bit tricky and difficult at times. But here's a few pointers to take away. Replacement cost value is on the value of materials and labor, not the materials and labor themselves. It's important to distinguish between the two, because your insurance company owes you the money to rebuild in case of a loss. Most often they will not actually perform the work for you. So therefore, you want to make sure that you're recovering at that same rate. Interesting things in way that you can make sure that you have the proper replacement cost value on your home or on your policy which will show up on your declaration page. Check your tax records. Your local tax records for your home will show you a determined value for your house. A good place to start. Other things, appraisals when placing your mortgage a lot of times will determine what the true value of your house. And also through the underwriting process, your insurance company will send appraisers out there to make a determination as to how much replacement cost value you need on your home. Making sure each and every one of those are accorded properly will make sure that you're either not being over valued and they're overcharged on your insurance, and also make sure that you have enough coverage that in the event of a total loss, you'll be able to properly recover. Thanks again for tuning in. This is Dan for eHow.


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