Homeowners: Learn to Calculate Home Insurance Replacement Costs

For homeowners who need an insurance policy that will financially restore all of their property and personal belongings, homeowners insurance replacement cost coverage is possibly the best option available. End Quote

A homeowners insurance replacement cost policy is the only kind of coverage that will cover the complete rebuilding of your home

Chicago, IL (1888PressRelease) September 23, 2009 - Homeowners insurance policies comes in two general types: actual cash value and homeowners insurance replacement cost. The former has lower premiums, with less coverage; the latter has much more coverage, but is typically higher in cost. But affordable homeowners insurance replacement cost coverage isn’t impossible to find. Just search online for homeowners insurance quotes and find the best rate, encourages a recent InsuranceAgents.com article, ‘Determine Your Homeowners Insurance Replacement Cost.’

“A homeowners insurance replacement cost policy is the only kind of coverage that will cover the complete rebuilding of your home. It will also replace any of your destroyed/lost personal belongings for its full worth, and will not include depreciation,” according to the article.

To determine the full worth of one’s home, as well as how to obtain sufficient homeowners replacement cost insurance, homeowners should do the following:

1. Know the formula that helps determine your home’s worth: “square footage of your home” multiplied by “local building costs per square foot.”
2. Consult a professional, either a homeowners insurance agent, an appraiser, or both. These people can help you determine the cost of rebuilding, material costs and the value of various home features.
3. Insure your home for what it’s worth today, not what you paid for it years ago. Local construction costs may have gone up, and the materials your home was built with may be worth more now. Also, local building codes may change the rebuilding expenses in your area.
4. Review your policy and make sure it provides enough coverage to completely rebuild your home. Reviewing the policy annually is a good rule of thumb and prevents coverage gaps.

If you’re interested in investing in home replacement cost insurance, talk to a homeowners insurance agent today. Visit InsuranceAgents.com for more information on home insurance, how to contact agents, and how to obtain multiple home insurance quotes.

staff contribution: Meha Ahmad

http://www.insuranceagents.com/home-replacement-cost.html

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