It is a common misconception that you should insure your home for what you paid for it, or what you could sell it for (commonly referred to as “market value”). Insurance companies often use a formula to determine the cost to rebuild your specific home should it be completely destroyed. Usually referred to as “replacement cost,” this figure can often be higher than the market value of a home, even in a case where a home is newly built. Remember also that, as a home ages, the cost to rebuild (with the same building materials), increases over time. It is a good idea to review your coverage periodically to make sure that your home is adequately insured.
Eric Hurt
Eric Hurt, LUTCF is an independent property/casualty and life insurance broker with SIG Insurance Professionals in Dallas, TX. He entered the insurance industry in 2003, and since then has been recognized numerous times for excellence in the area of sales and customer service. He obtained his Life Underwriter Training Council Fellowship Designation in 2004.
He can be reached directly at (972)490-2327, or via email at eric.hurt@trustsig.com.
