When you insure your home, you have the option to choose between insuring it for its market value or its rebuild value. So which should you choose?
Here, we discuss the pros and cons of each option in Monroe, GA and help you make the best decision!
When You Insure Your Home for Its Market Value
To put it simply, market value is what your home is worth on the current market. This is the price a willing buyer would pay for your home and is usually based on recent comparable sales in your area. The pros of insuring your home for market value include
- You’re more likely to get a payout if you need to make a claim
- It can be easier to sell your home if it’s insured for market value
The cons of insuring your home for market value include:
- Your premiums will be higher
- If your home is undervalued, you may not get the full payout you’re entitled
When You Insure Your Home for Its Rebuild Value
The rebuild value of your home is how much it would cost to completely rebuild your home from scratch. This is usually lower than the market value, as it doesn’t take into account the value of the land your home is built on. The pros of insuring your home for its rebuild value include:
- Your premiums will be lower
- If your home is undervalued, you may not get the full payout you’re entitled to
The cons of insuring your home for its rebuild value include:
- You’re less likely to get a payout if you need to make a claim
- It can be harder to sell your home if it’s only insured for its rebuild value
So, which option is right for you? Ultimately, it depends on your individual circumstances. If you have a mortgage on your home, your lender will usually require you to insure your home for at least its rebuild value. However, if you own your home outright, you may want to consider insuring it for market value so that you’re more likely to get a payout if you need to make a claim. Talk to Atkinson Casey Agency to discover the best option for your home.
Give Us A Call
If you’re not sure how much your home is worth, Atkinson Casey Agency in Monroe, GA can help. We specialize in home insurance and can provide you with a free, no-obligation quote. Contact us today to get started.
