One thing for certain is how values of your home vary depending with whom you are dealing. For example, a realtor trying to sell your home is going to reference the term “market value” and will list your home based on the current housing market; while an insurance company is there for you when the catastrophic scenario happens. As you know, unfortunate situations happen all too frequently and we are here to make sure when and if it does, you have adequate protection. This is where the difference lies between dwelling coverage and market value.
Differences Between Market Value Vs. Dwelling Coverage
Some of you may wonder why you would consider insuring your home for more than it would sell for, and this is why. Market value is established by the value of other homes in your area that have sold in the past year, that are similar to yours in style, condition, age, and size. It’s basically what you could buy or sell your house right now with the current housing market.
Dwelling coverage covers the estimated cost to rebuild your home, should something catastrophic happen such as a tornado or fire, along with debris removal and demolition of any undamaged portion of your property following a disaster. You should always prepare for worst-case scenarios so when the unthinkable happens, you are fully protected.
In today’s market, the expense of rebuilding your home for the “market value” amount would mean you would have to settle for sub-par construction and do without some amenities that perhaps you have become accustomed.
The Impact of Dwelling Coverage Created by the Pandemic
The pandemic changed our world in many ways. Not only did many production facilities slow down, but many shut down. This created a decrease in supplies, yet an increase in demand for building materials and supplies. During COVID-19, many people began renovations or new construction only to face rising lumber costs, labor and skilled worker shortages, and the inability to get the building materials and supplies needed. All these challenges paved the way for an increase in both market value and dwelling values.
Cameron Group Insurance Understands All Your N.Y. Homeowner’s Insurance Needs
Insuring your home doesn’t need to be difficult, and that’s why Cameron Group Insurance is here for you. We know the importance of being properly insured and we can work with you and for you to assess your dwelling value to make sure it is in line with your coverage. Don’t wait! Call us today at 845-627-2130. We are here for all your N.Y. homeowners insurance needs.
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