Wondering ‘what is my home really worth’? Well, It depends where you look…Our Tampa, FL Insurance agents have found that some of our clients are frustrated when they see 3 totally different numbers throughout the year regarding their home “worth”.
3 numbers you will see as a homeowner
* Market value of your home which is what you bought your home for or what you could sell your home for today if you put it up for sale
* Rebuilding cost of your home which is listed on your homeowners insurance policy.
* Assessed value of your home which is what the property appraiser says your home is worth
So, why 3 numbers and why are they different? They each serve a different purpose.
As we saw with the home boom in the 2000’s, home prices (market value of homes) skyrocketed. With the rising popularity of the Tampa Bay area, the market value of homes will trend upward). Assessed valuation of your home determines the value of a residence for tax purposes and takes recent, comparable home sales and inspections into consideration. An Appraiser will also provide an evaluation of a property’s value when a home is purchased and financed with a bank.
When it comes to Florida homeowners insurance, you want to insure for Rebuilding cost, not market value or assessed value. To get an idea of your home’s rebuild value, multiply your home’s square footage by the average rate a home builder would charge per sqft or call your local insurance agent and have them run a replacement cost estimator for you. Keep in mind rebuild cost is only on the home itself, not your land. Seibert Insurance Agency can offer coverage for homeowners insurance for the amount of money it would take to rebuild your damaged or destroyed home with the same like kind/quality of materials.
The rebuild cost of homes has also been increasing year after year…the cost of labor and materials are what drives these costs. For example, a roof that cost $10,000 10 years ago to replace may cost $25,000 today simply because of the cost of petroleum and labor have increased so much. This cost is higher than what you see home builders building homes for brand new because additional factors are taken into an account after a claim. For example, you may have to level and remove the existing structure and if it is after a disaster, the cost of labor and materials will soar due to huge shortfalls of both labor and materials.
Remember, when it comes to Florida homeowners insurance, you want to insure for Rebuild cost, not market value. Call Seibert Insurance Agency today to complete a Replacement Cost Estimate on your home to ensure you are insured properly!