THURSDAY, FEBRUARY 18, 2010
It is quite common for insurance companies to insure homes for more than the market value. This often poses questions from homeowners "Why is my house being insured for more than it is worth?" Before determining how much to insure a house for though, it must be decided how the insurance company will value the house if there is a claim. One method offered is to value the property at Replacement Cost, which as the name implies, is intended to pay to replace the property, without regard to the original or current purchase price.
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