Is Homeowners Insurance Based On Property Value?

  1. 14231 POINTS
    Tom Sheehan
    Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
    The dwelling amount in a Homeowners Insurance policy is based upon the calculated cost to reconstruct your home in the event it is distroyed or severely damaged. Your Insurance Professional can complete a quality inspection and calculate the proper amout for your home based upon the use of a qualified Home Reconstruction tool usually provided by your insuring company.
    Answered on December 9, 2014
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  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Often the cost to rebuild or repair your home will be a great deal different than the market price. The recent swing in market prices should illustrate that point. The location of the home has much to do with the market price and yet has little to do with the cost of reconstruction. In California we are required to insure to cost to rebuild, regardless of the market price of the house.
    Answered on January 15, 2015
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