Securing Your Most Valuable Investment - Your Home

The home is the most valuable investment you could give to your family. Needless to say the importance of having one, a home is where you build your family.

So if you value your family that much, here are some important information to consider when determining the coverage amount for your home.

Make sure that your home is insured for at least 100% of its estimated replacement cost

To determine your amount of homeowners coverage:

1. Get an estimate of the replacement cost of your home.
2. Select the coverage amount that best fits your needs.

We recommend that you purchase an amount of coverage at least equal to the estimated replacement cost. But the choice is yours. Determining your home’s estimated replacement cost is important because this will ultimately determine which policy options are available to you. Since it is impossible to predict today what the exact cost will be to replace your home in the future, it’s important to have enough coverage to account for unforeseen circumstances.

Understand the difference between market value and replacement cost

Market value is the amount a buyer would pay for a home, including the land, regardless of how much it would cost to rebuild the home. Replacement cost for this purpose is the rebuilding cost necessary to repair or replace the entire home.

 Replacement cost IS NOT:

1. The market value of the home.
2. The home’s purchase price or the cost of the land.
3. The outstanding amount of any mortgage loan.

If you need more information about securing your home, Murray Utah Insurance can provide you with all the information you need and the best service in dealing with your insurances.