When you buy a home there are 3 numbers that come into play. The first number is the market price or purchase price. The second number is the assessed value which is what your taxes are based on. The third number is Replacement Cost which is the number used to insure your house.
When insuring any home you need to make sure you have enough coverage to rebuild the structure. You don't have to insure the land because if the house burns down the land is still going to be there. Replacement Cost for older homes is often the highest number because of the cost of materials and craftsmanship.
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When insuring any home you need to make sure you have enough coverage to rebuild the structure. You don't have to insure the land because if the house burns down the land is still going to be there. Replacement Cost for older homes is often the highest number because of the cost of materials and craftsmanship.