Insuring your home to its current value is vital to making sure you get what you pay for in the event of an insurance claim.

Insurance is based on the value of your home on the local market. It factors this value in establishing the cost to rebuild your home in the event of a total loss to your home; therefore it is important to work with your insurance provider to determine the rebuilding cost estimate for your home.

Every three or four years, your broker should contact you to determine if all the information on the home is current, so that any changes in value can be updated on your policy to ensure you have the proper amount of coverage.

Here is a brief description of what is involved in determining the Insurance Value of your home:

Rebuilding cost - include the actual cost of labour and materials to rebuild the physical structure.

Updates - additions or renovations to the home, usually in excess of $10,000.

Debris Removal - covers the cost to prepare the lot and whatever remains of the building before reconstruction can take place.

Yearly Inflation - adjustments help keep the value of your home current in between actual insurance value assessments.

Guaranteed Replacement Cost - this endorsement provides full replacement cost regardless of the amount of insurance on the home provided you have insured your home for the value of the rebuilding cost estimate.

These are just a few items to help you define the insurance value of your home. Always remember to consult your insurance provider to find out specifically what your policy covers and excludes.

Courtesy
Gord Enders, General Manager
Direct-Line Insurance
Bus: 780-468-1007