Grab your calculator

The insurable value of your home is different than your home's purchase or sell price. Understanding this difference is the critical piece to understanding your coverage!

Use your phone, and let's do a little research. You can find the price of a new home in your area using one of the many realtor apps (Zillow, Trulia, etc). Look at the listing and find the "price per square foot." This is the guiding post for the amount you will use for your calculations. Write down this number!

Now, pull out the calculator! Multiply the price per square foot of a new build by the current square footage of your home.

$210.00 (new build cost per square foot)

X

2450 (sq. footage)

=

$514,500

REMEMBER - this is the cost to rebuild your home if you suffered a total loss. If a tornado caused a total loss of your home, you would be considered a "new build." This calculation determines the insurable value of your home.

Now for your homework. Look at Coverage A of your home policy. Is your calculation close to the amount listed on your policy? Do you have enough coverage to replace your home in a worst-case scenario?

Side note...Coverage A is for the structure and does not cover the items within the home. Personal belongings coverage will be discussed soon!

Your home policy should reflect your needs! If you have questions or want to look at your options, we are here for you!