Whether homeowners are preparing their property for a renovation or just doing some spring cleaning, it's worthwhile to sit down and reevaluate the suitability of their current homeowners insurance policy. If over the last year they've made updates to their home, existing valuations may not provide sufficient coverage if a covered incident damages or destroys the house. It's important for homeowners to understand the practical function of a replacement cost valuation, which shouldn't be confused with a real estate valuation.
The home's insured value—its replacement cost—needs to equal the cost in labor and materials to rebuild from scratch, including the foundation, architect's, engineering and permit fees, as well as taxes. That's not the same as the market value, which is what comparable homes are being sold for in that area.
Big-ticket projects like a remodeled kitchen or a new addition mean significant changes to a building that likely make it more costly to replace. When incidents occur from natural disasters to house fires, homeowners are left with whatever their latest policy specifies as a replacement value, which may be insufficient to pay for all the damages. If that figure is years old, it might not reflect the latest changes the homeowners have made.
Insurance professionals should rely on an accurate, consistent home valuation method. For all your insurance-to-value (ITV) needs, e2Value can provide valuations for homes of any age and size. Our valuation programs provide superior results because of our patented methodology and system design. This ensures the greatest consistency across your entire book.
Our solutions provide flexible applications for any home or commercial building, and some of the best data in the industry. Contact us today to learn about our suite of valuation solutions.