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How much home insurance do you really need?
If your home has suffered a devastating damage, the last thing you want to find out is you don’t have enough insurance. But how much do you really need? When deciding on how much insurance to buy, many people think solely about market value. This is wrong. Market value is simply the selling price of your home and has no connection to building costs. As your Insurance Broker we have the capability to calculate the cost to rebuild your home based on the finished area, quality of materials and special features such as air conditioning, extra bathrooms, fireplaces, decks and attached garages. New construction begins at the foundation and builds upwards. Repairing a house that is not totally destroyed often involves removing the roof and rebuilding from the top down which is a far more time consuming and a very labour intensive process. We recommend that you insure to value and obtain Guaranteed Replacement Cost coverage. This means having enough coverage to completely rebuild your home, in a timely manner, with like, kind and quality materials, all at today’s prices. If you have this Guarantee the Insurer will pay for any shortfall if the cost to replace your home is more than the home’s stated value on the policy. Insurance to value does not cost; it pays! |
How much home insurance do you really need?