The best homeowner insurance meets your needs. The insurance shopper who understands their needs and the basic elements of home insurance will have much more confidence when purchasing a policy.
But that’s the problem. Many people shop for home insurance without knowing what they need. And that’s where a Green Brook agent can help.
The age of your home has a direct bearing on its market value. Thus, the more you know about the market value of your home and the approximate cost to rebuild it, the better.
The best insurance for older homes
For example, older homes built in the 1900’s have much lower market values today because most of them have depreciated. The market value for an older Victorian style home may be $50,000, but the actual cost to rebuild that home may be $200,000. Because of this, insurance companies insure old homes with actual cash value policies. These are often called market value policies.
These policies will reimburse you for the market value of your home when there is a total loss. The market value policy is the best homeowner policy for the older homes that have depreciated.
But what about new homes or homes under construction?
The best insurance for new homes
When purchasing a new or recently renovated house, you should look into a replacement cost policy. A replacement cost policy will repair or replace anything damaged that has not already depreciated. These policies often cover both the house and the contents inside the house.
The replacement cost and market value of a new home are almost the same. The age and market value of your home will help you determine the best homeowner insurance for you.
Insurance shoppers will often search for the best discounts. When it comes to choosing between a replacement cost or market value policy, discount opportunities are typically the same. Companies offer both groups discounts for protective devices like deadbolt locks, smoke detectors and fire extinguishers. People often receive discounts for having fire and burglar alarm systems as well. Check out our recommended insurers for more details.