A question that we get a lot at AZ Insurance team is; Why is my home insured for a different number than the price of my home? There are a few reasons for this and we will be going over all of them in todays’ blog.
The main reason that your home is insured the way that it is, is that home insurance covers the replacement cost of the home. Market value can be a lot different, this is completely based on what someone is willing to pay for your home. This could include factors like location, market demand, and also the amount of land the property has.
The insured value can also be based on appraisals that may be outdated and do not align with the current market. It can fluctuate based on economic conditions, renovations, or even changes in the neighborhood.
Insurance doesn't cover land value. It only covers the replacement cost of the home. It focuses primarily on the structure and any attached features. If your home is on a piece of land, chances are that your home might be insured for less than the total market value, which includes land.
To make sure that you have the correct policy for your situation, it is good to always monitor your policy. That is why you need a brokerage like AZ Insurance Team to do all the hard work for you. We can monitor your policies for you and make sure that you are getting the best deal possible at all times. Give us a call at (480) 535 5709 and let us help you today!!
Independent insurance brokerage located in Tempe, AZ. We offer auto insurance, homeowners insurance, life insurance, renters insurance, commercial insurance…
Disclaimer: Coverage will vary on state, insurance company, and type of policy.
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