You may be wondering what the difference is between home insurance replacement value and market value. Homeowners Insurance typically covers the cost of rebuilding your house, whereas Market Value coverage will only pay you for what your property would sell for on the open market. If you’re not sure which type of policy to choose, we can help!

How does replacement cost insurance work?

Replacement cost insurance is designed to cover the rebuilding of your home in the event of a covered loss. This means that if your home is destroyed, your insurance company will pay for the cost of rebuilding it- up to the policy limit. Many people choose this type of coverage because it ensures that they will have enough money to rebuild their home, even if the cost of construction has increased since they purchased their home.

What is market value insurance?

Market value insurance, on the other hand, will only pay you for the property’s current market value. This type of policy is typically less expensive than replacement cost coverage, but it’s important to note that it may not be enough to cover the cost of rebuilding your home.

What is actual cash value insurance?

Actual cash value insurance only pays the depreciated value of your home at the time it was damaged. This means that if you have a home with a current market value of $250,000 but has been in your family for generations and is now worth significantly more due to sentimental reasons or because property values have increased over the years, this type of home insurance policy would cover the cost of the home minus any depreciation.

What are some factors to consider when making this decision?

When deciding between home insurance replacement value vs market value, you should think about the age of your home and how much it has appreciated in value. If your home is older, replacement cost coverage may be more favorable because its price tag can include an increase for inflation.

What else do I need to know?

You’ll want to make sure you have enough coverage to rebuild your home in the event of a disaster. The average home costs about $225,000 to rebuild, so be sure to speak with an insurance agent about how much coverage you need.

How much will insurance cost in comparison to the market value or replacement cost of your home, and how can you reduce these costs?

Home insurance can be expensive in Florida, especially if your home is older and has appreciated in value. However, there are ways to reduce the cost of insurance coverage. If you’re looking for more affordable home insurance rates, we recommend that you contact your insurance agent today.

So, which type of coverage should you choose?

The best way to decide is to speak with an insurance agent. They will be able to help you understand the differences between replacement cost and market value insurance, and they can also recommend a policy that fits your needs.


If you want to discuss options for home insurance, please call us at 561-732-9305 our quoting hours are Monday through Friday from 8:30 AM to 5:00 PM. In addition, you can request a quote online. Please remember, We Handle All the Work, While You Save!

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