Home Insurance Coverage with respects to Property Value on Bainbridge Island.
Most common question we have been getting asked lately:
” But my home purchase is 865,000….why am I only getting 540,000 in homeowners coverage? ”
The answer is simple:
Homeowners Insurance is to cover the dwelling, other structures, contents and your liability ( along with other ancillary coverages, we will not discuss) .
The land is NOT covered by homeowners insurance with respects to replacement value.
The homeowners insurance is designed to replace the dwelling with like quality, size, and design. This value is a delicate calculation of size, build quality, materials used, and cost of supplies int he area.
So it is possible that a waterfront home that has a purchase price of 865,000 can actually have the same amount of homeowners insurance coverage as a home on a dead end street that was purchased for 456,000.
Keep this in mind when you shop your coverage….every home is unique and nothing should be assumed. Be sure your broker, be it us or someone else, takes the time to accurately value your risk.
Fell free to call us anytime for a very quick , yet accurate, home replacement value.