Mortgage lenders generally insist that you have a homeowners policy to protect their investment in the event of a loss. While Idaho doesn’t require people to purchase insurance, it’s wise for every homeowner to have protection. Knowing how much and what type of policy to take out can be complicated. That’s why at The Insurance Shop USA, our professionals are ready to help members of the Sandypoint ID community select a policy that meets your needs. We’ll work to answer your questions and help you avoid being underinsured.
Home Replacement Costs
One of the more common errors homeowners make is confusing property value and replacement costs. Although it appears there should be some connection, they are separate issues. Property values may rise and fall with the Real Estate market’s supply and demand. Think about the home prices before and after the housing crash. That difference was not a reflection of home construction costs.
How much it costs to build or rebuild a structure is determined by factors that include the price of labor, materials, permitting, building and fire codes, among others. If you have an older home, it may have deprecated in some ways. Other properties include custom era design and high-end materials that are not easy find. They can be expensive to replace. The point is that you should evaluate your home based upon what it would take to rebuild in the event of a total loss.
Today’s replacement costs run about $150 per square foot. If you have detailed woodworking and custom design features, restoration could be higher. Additional expenses could include razing, debris removal, meeting new building codes and permitting.
It’s important that you have sufficient homeowners coverage in the event of a total loss. The Insurance Shop USA is committed to serving the good people of Sandypoint ID. Our insurance professionals are here to listen and help create a policy or update an existing one that provides you with the secure coverage you deserve.