Replacement Cost - Oro Valley Real Estate
Oro Valley Real Estate, Oro Valley Homes for Sale in Oro Valley Arizona AZ. Search Beautiful Oro Valley Real Estate and Homes.

Blog284.jpg

Why should I insure my home for more than the purchase price?
Because there may be a significant difference between the price you pay (Market Value) and the actual cost to rebuild that home (Replacement Cost).
Consider this client’s experience:
Purchased home in March 2016
Purchase price was $195,000
Homeowner insured the home at the estimated replacement cost of $274,000*
One year later, their home burned to the ground
Actual cost to replace the home totaled $261,000
Insured at Market Value
Market value and purchase price:$195,000
A catastrophic event causes total loss of the home
Cost to rebuild: $261,000
Insurance only covers up to $195,000
Insured at Replacement Cost
Market value and purchase price $195,000
A catastrophic event causes total loss of the home
Cost to rebuild: $261,000
Insurance covers $261,000 - all costs covered!
Can you afford this risk?
For more help Visit https://www.orovalleyrealestate.com/Oro-Valley-Homeowners-Insurance 
*Actual replacement cost is determined by the underwriting carrier and may need to be updated periodically as market conditions dictate.