In Albertville, Minnesota, should I insure my building’s structure for the market value or rebuilding cost?

Selecting the appropriate home insurance policy in Albertville, Minnesota can seem complicated. You may worry about the best type of policy and how much coverage is necessary for your home. Ultimately, the decision to obtain a policy for the market value or the rebuilding cost of the building structure depends on your personal preferences.

Rebuilding Cost

In general, the rebuilding cost of the structure is slightly less than the market value because the value of the property is usually calculated with the surrounding yard, land and any other structures on the property.

Obtaining a policy for the rebuilding cost may or may not be a smart decision. The reason is that it may be more limited when you have a total loss. You may not have enough coverage to pay for rebuilding the structure as well as your personal belongings or damages to other parts of your property.

Market Value

Even though the market value of a property is subject to change over time, it calculates your coverage based on the cost of replacing all of your property, including repairs to the land or other structures on the property.

The market value is usually slightly higher than the cost of rebuilding, but it may also result in a slightly higher premium. Depending on your current budget and plans, it may be appropriate to consider the policy after you no longer have potential complications.

Deciding to use the market value or the rebuilding cost to determine the appropriate homeowner’s policy is ultimately a personal choice. Contact Pizano Insurance to talk to an independent agent for more information about the differences between the policies and the complications that may arise when you select a particular type of policy.