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Why might the listed replacement value on a policy not accurately reflect the cost of replacing a home?

User Quincy
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2 Answers

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The insurance estimated value is not always the value paid by the owners. Since the listed replacement value on a policy does not accurately reflect the cost of replacing a home, it is important to make sure you have estimates and evaluations on your home often so that you are aware of what the rebuild price would be if you had to replace your items.

User Romarie
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The listed replacement value on a policy not accurately reflect the cost of replacing a home because the insurance replacement estimate may or may not be entirely accurate depending on factors such as Build grade and finishing option's. The insurance company only does an estimate of rebuild cost based on current market prices by square footage.
User Tom Osterbind
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