Five Tips for Insuring Your Home to Value

By Megan Cooney, Marketing Assistant

After experiencing a total loss, the last thing you want to worry about is whether or not your financial situation can fully cover the cost of rebuilding your home. By taking steps towards insuring your home to value before a loss, you can eliminate the stress of potential financial turmoil.

The key thing to remember is that rebuilding a house is different than buying one. The market value of a home is the price at which it would sell today, and is based on current economic conditions and other factors. The replacement cost of a home is based on what it would cost to completely rebuild a home after a total loss, in accordance to ordinance and law changes.

Here are five tips for insuring your home to value:

  1. Take inventory of your personal belongings. Take photographs or video of the contents of your home. Submit recent appraisals of your valuables and compare the value of all your belongings to the limits listed in your homeowner’s policy.
  2. Get an estimate of your home’s value. Some insurance carriers can estimate the typical cost to rebuild your home based on the average costs of materials and labor in your area.
  3. Report recent remodeling and renovation projects. Inform your independent agent of any updates made to your home; otherwise your replacement cost coverage might not cover the updates when rebuilding.
  4. Debris removal coverage. Typically, the cost for debris removal is factored into the dwelling replacement cost, a percentage of up to 10 percent. Adding a percentage of debris removal to the dwelling value will help you from having to use the dwelling rebuilding coverage towards additional costs, such as debris removal.
  5. Review your policy yearly. Replacement cost coverage is based on a number of factors, from the price of labor and materials to the toll of natural disasters in a specific area. By reviewing your policy with your independent agent, you can ensure your home is adequately covered in the event of a loss.

For more information on insuring your home to value, contact McGrath Insurance Group at 800.342.3859 or

*This article is written for informational purposes only and should not be construed as providing legal advice.