Replacement cost vs. Purchase cost, whats the right choice when it - TopicsExpress



          

Replacement cost vs. Purchase cost, whats the right choice when it comes to your property? It probably depends on the market around your area. If the majority of homes are newer, and the market is active, and land costs are generally high, then purchase price may be fairly close to replacement cost (especially since purchase price includes the lot, and replacement cost doesnt). When a majority of the homes are older homes, or the market is depressed then replacement cost can end up being several times the purchase price. Next time you wonder about the insurance limit, consider how much you would sell it for, and what you would expect from insurance if it burned down the day before you sold it. Or consider the co-insurance clause, and decide if you really want to be responsible for x% of a multi-thousands repair bill.
Posted on: Wed, 30 Oct 2013 04:06:26 +0000

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