I bought my home for $ 350,000 2 years ago, but my Homeowners Policy indicates that the coverage for my home is $ 275,000. Why isnt my Homeowners policy covering the entire value?
The purchase price of your home at $ 350,000 was the market value which is not the same as the replacement value. Replacement Value is what it is going to cost to actually repair or replace the actual structure. Lumber, Drywall, Insulation, Concrete, and other building supplies are the factors used to determine the actually building value. The size of the structure is also a factor in determining how much building supplies will be needed.
