The replacement cost of your home is exactly what it sounds like: the amount of money it would cost to "replace" your home in the event of a loss. When you insure your home for it's replacement cost, your insurance company at the Lake of the Ozarks will reimburse you for the cost of rebuilding or repairing your home, based on the size and structure of the home that was lost or damaged. The best way to figure out the replacement cost of your home is to have a contractor provide a detailed bid.
The market value of your home is the amount that a buyer would pay to purchase both your home and the land it sits on, in its current condition. Unlike replacement value, the market value is influenced by factors beyond the material and labor costs of repairs or reconstruction. These influences can include: proximity to good schools, local crime statistics and the availability of similar homes.
In some cases, the market value of your home can be quite a bit lower than the replacement value. Make sure that your Lake of the Ozarks homeowners insurance coverage is adequate for your needs. It will need to cover not only the cost of rebuilding the structure, but also the cost for replacing all of your homes contents. This is where a home inventory checklist can come in handy!
A homeowners policy gives you financial protection in the event your home or contents are damaged in a loss. In many cases your policy also grants some coverage to other structures such as sheds, detached garages and docks. Not all policies cover docks or other structures for collapse, which can be a major issue at the Lake of the Ozarks during the winter. For more information on making sure you have adequate homeowners coverage, give Insure the Lake a call at 573-348-2794.
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About the Author: Steve is a double back-flip insurance ninja. He was named Young Insurance Agent of the Year by the Missouri Association of Insurance Agents in 2010 and is a Certified Insurance Counselor. When he is not helping customers, he enjoys community service, Latin dancing with his beautiful wife and going on adventures with his two awesome sons.
Steve Naught, CIC
3736 Osage Beach Parkway
Osage Beach, MO 65065
Next to Golden Coral
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