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Understanding Replacement Cost

Insuring your home for its replacement cost is one of the most important things you can do to protect it. Your most important investment deserves proper protection. That’s why it’s essential to understand replacement cost and how it affects your insurance coverage.


What You Can Do

Know why inspections are important
SageSure inspects every home we insure to confirm the replacement cost. If the inspector determines that your home’s replacement cost is more than what it is insured for, understand why it’s important to increase your coverage.
Communicate with your agent
Be sure our insurance representative has accurate and current information about your home. Update them when you make significant changes, renovations or improvements.
Take an active role in your policy
Keep an updated home inventory in list or video form. Obtain an updated replacement cost estimate from a trusted builder or appraiser. Review these items annually with your insurance representative so any necessary policy adjustments can be made.


Home Value Can Be Measured in Different Ways

Many people think their home’s market value and replacement cost are the same thing, but they’re actually quite different:
The market value of your home is typically defined as what it might sell for today, but replacement cost is what it would actually cost to totally reconstruct your home using today’s materials and labor.


Get the Coverage You’d Need to Rebuild

We hope you never suffer a severe loss, but if you do, having adequate coverage for your home’s replacement cost can make all the difference. Inspections, appraisals and annual coverage reviews help you and your insurance representative select the appropriate coverage for your home’s replacement cost.
We appreciate the trust you’ve placed in us to help protect your most important investment. We want you to have peace of mind in return.
If you have any questions about your policy or replacement cost, or if you think any changes to your policy should be made, please contact your insurance representative.