Home Replacement Guide

It is important to insure your home to the amount that it would take today to re-build (Replacement value) If you do not have enough coverage, Not only would you be “short” in your re-building cost, you could also be subject to co-insurance penalties.

Replacement value is not the same as market value. Market value is what your house would actually sell for, and is generally more than the replacement cost. This is because replacement value does not include the land, which almost always does not need to be replaced.

Check your policy. Many include replacement cost and others do not. . Note there are often limits or maximums on the replacement cost endorsement (often 125% or 150% of the insured value).

If you prefer replacement coverage and do not already have it, this coverage can be added to your policy, and it is well worth it to protect your investment in your possessions. Your agent can tell you about what’s included or the costs involved.

Check with your agent CONTACT US who can assist you with the proper value or click here to do an estimate

Basic Considerations

Verify the Information on your policy

  • Check your square footage to be sure it is the same as listed on your policy
  • Check what is home is listed at
  • Check # of bathrooms, etc
  • Fireplaces / porches / etc can add cost

Upgrades

  • Flooring (Wood, Tile, Stone, etc)
  • Bathrooms Stone/Tile floor & enclosures
  • Kitchens: Cabinets, flooring, countertops

Dwelling

  • How many stories
  • Odd Shapes / split level / basements
  • Hillsides
  • Siding (wood, rock, brick, etc)
  • Is your garage attached or detached

Building ordinance upgrades.

You may not be able to re-build with the same materials. New codes often mean more work and more expensive materials.

Debris Removal

How much would it cost to clear away and remove any pollutants.

Who decides how much my property is worth?

State laws may dictate how losses are to be figured, which means the same insurance company may use one method in one state and a different method in another. The common methods are:

  • Actual Cash Value – The replacement cost of the item minus depreciation. For example, a new television set may cost $500. If your 7-year-old TV set gets damaged in a fire, it might have depreciated 50 percent. Therefore, you would be paid $250 for that set.
  • Replacement Coverage – The cost of replacing an item without deducting for depreciation. So today’s cost for a TV set with features similar to the 7-year-old one damaged by fire would determine the amount of compensation. If it still costs $500 today, that would be the replacement coverage.

Replacement value should not be confused with market value. The market value is what your house, for example, would actually sell for and is generally more than the replacement cost. This is because replacement value does not include the land, which almost always does not need to be replaced.

Check your policy. If you prefer replacement coverage and do not already have it, this coverage can be added to your policy. Typically, the difference in premiums is 10 to 15 percent to upgrade from actual cash value coverage to replacement coverage. However, it is well worth it to protect your investment in your possessions. Your agent can tell you about the costs involved.

Get an instant home quote

It's fast, easy, and free. Go »

San Pedro Homeowner insurance

Refer a friend & earn a gift

If we write your friend's insurance, we'll send you two movie tickets.

Refer someone today

We represent fine companies like

Safeco Insurance, Member of Liberty Mutual Group



Visit our mobile site on your phone today and bookmark it for future use.


Not sure where to start? Browse our Information Center to learn all about your insurance options.


50% of our business comes from client referrals. Contact us today and we'll show you why that is.

Our locations:

Harbor Insurance
1622 S. Gaffey #104
San Pedro, CA 90731

310-832-5311

C & S Insurance
3220 Sepulveda Blvd #202
Torrance, CA 90505

310-517-8255