One of the most common surprises in home insurance sounds like a mistake: the policy insures your house for more — sometimes a lot more — than you could sell it for. It isn’t a mistake. It’s two different numbers measuring two different things.
What it would cost to put it back
Your policy is built on replacement cost: what a contractor would charge, right here in Latimer County, to rebuild your house as it stands — lumber, labor, roofing, all of it. Construction costs have climbed hard the last several years, and they’ve climbed faster than most home prices around here.
Land doesn’t burn
The market price of your house includes the land under it. After a fire, the land is still there — so the policy ignores it and insures the structure. That’s why the two numbers rarely match, in either direction.
The real risk is the other way
Being insured over market value costs you a few dollars of premium. Being insured under rebuild cost can leave you thousands short on the worst week of your life. If your coverage hasn’t been looked at since before lumber prices jumped, it’s worth a fresh look.
Want a second set of eyes on your own policy? Bring it to the Tucker-Downing Agency in Wilburton and we’ll go through it line by line — free, no obligation. Call 918-465-2538.