I get a lot of emails from current and past clients. This week, a client asked about home owners insurance and specifically a replacement cost estimate for his Folsom Boulder home. What is replacement cost?
Your Home May Be Your Biggest Investment
Part of the allure of American home ownership is it is a great way to have an investment. Why pay rent to someone else when you can grow your equity? And it is important to consider your hazard insurance to protect that investment. This is doubly true if, like my Folsom Boulder client, you have owned your house awhile, but never updated the insurance coverage.
The Difference Between Market Value and Replacement Cost For Your Folsom Boulder place!
Market costs these days is skyrocketing around town. This is the amount buyers are willing to pay for the land and the existing house. Replacement cost is the rebuilding cost of the structure. Keep in mind, labor expenses and materials are each higher than five, ten or more years ago. With higher costs, it likely costs more to replace your Folsom Boulder property today, than it did when you first got the policy.
How to go about Figuring this out
If you, like my Folsom Boulder client, have been in your house awhile, you might be wondering, “What’s my replacement value?” I can help with that. But, as you work to estimate the value, keep in mind important items such as:
- Is your basement finished? This would add to the expense of rebuilding.
- Have you upgraded the kitchen appliances since buying?
- Has there been a home renovation or did you add a remodeled kitchen?
- Were any rooms added? That happened to be part of the scenario for Steve, living on Folsom Boulder Co. Those new rooms really changed the replacement cost.
Knowing what you’ll need to address in the event of a disaster can protect you and your family.
Community Influences Market
Don’t forget, Boulder/Denver is going through a commercial boom. There are building cranes across the skyline in Boulder, Denver, Fort Collins and other cities along The Front Range. This commercial activity is adding to the cost of labor if you needed to rebuild your home today. Thus, if its been awhile since you estimated your replacement cost, now is a smart time to contact me and we can review your Folsom Boulder home value (or really, any part of Boulder/Front Range!).
