A Homeowners Guide to Replacement Cost and Market Value

If a disaster strikes and your home is damaged or destroyed, do you know what it would cost to restore your home to the condition it was in before the disaster? Let’s discuss the replacement cost of your home – what it is and what’s included – and how this is different from the market value.

While replacement cost and market value are both ways to determine the value of your home, they are used for different reasons.

Replacement cost is the price to rebuild your home to its pre-loss condition in the event of a total loss.

Market value is the calculated price of your home if you were to list it on the market to sell.

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