Natural disasters are on the increase. Homes have been flattened by tornados and hurricanes. Families have been forced to rebuild their homes from scratch as a result. If you found yourself in a similar situation, do you think your home insurance Waldorf coverage would be adequate?
The fact is that home insurance policies are often only adequate to cover the present market value of the home. They may not be enough to cover the rebuilding of the home from the ground up. Many homeowners do not realize that there is a discrepancy between the market price of their homes and the cost of rebuilding them. Your house may be sold at a price of $3 000 000 in the market but may cost $1 000 000 more to build from ground up. Therefore, a cash-value home insurance policy will not cover the cost of the rebuilding. However, a replacement policy will meet the cost of rebuilding the house.
There are many factors that contribute to the difference in cost. Take, for example, homes that were part of a development project. The contractors building the houses were more likely to get large discounts for the materials purchased for the building than you would for building a single unit. This is because these contractors would be purchasing material in bulk. In addition to this, the raw materials used to build your home have become more costly. The appreciation in price over the years will have a significant effect on the cost of rebuilding your home.
Although replacement-value home insurance Waldorf policies offer better coverage for your home, they may not cover the entire cost of rebuilding your home. There are various costs that go unaccounted for and are not included in the insurance policies, as all insurance policies must have their limits. Homeowners find that they must meet some of the construction costs themselves in the event of having to rebuild their homes.
So, how can you ensure that you are adequately covered? Be proactive about getting the true costs of rebuilding your home. Get a contractor to give you the rebuilding cost of your home per square foot.
Consider the space within your home. This should include the space that is not lived in. Get accurate measurements of your whole home and multiply this number by the quotation given to you by your contractor. You should be able to get the current cost of building your home from ground up.
Compare this price with the price of your home insurance Waldorf policy. Does your policy cover all the costs of rebuilding? If not, have a talk with your insurance provider and discuss the possibilities of covering the remainder.