Why is the replacement cost so high? I didn't pay that much to buy it.
Your replacement cost is not necessarily the market value of the home. The amount your home is insured for is what it would cost to rebuild it in the event you had a total loss, including the cost to tear down the destroyed structure.
Related Home Insurance FAQs:
- What does my policy cover?
- After I renovate my home, do I need additional home insurance coverage?
- If my household appliances cause water damage does my home insurance cover that?
- What's the difference between replacement cost and actual cost value?
- What is a home warranty and does it cover the same thing as home insurance?