Is Your Home Insured To a High Enough Value?

 There are many things to remember when deciding how much insurance coverage you need on your home. Let’s go over a few.


Where you live changes the cost to rebuild or fix your home if you were to have a claim.  The Midwest and South are cheaper than California.


The price to rebuild in Star, Nampa and Emmett Idaho is more than double than it was in 2016.

Custom Home

Do I have a custom home?  If there are 20 other homes in your subdivision you may not have a custom home, but you may still have high end cabinetry, countertops and other finishes.  If you have a one of a kind home the price to rebuild will be more than a tract home.


You do not need to include the price of land in your home rebuild calculation.

As of July 2021 we are encouraging clients to insure their home starting around $200.00 a square foot.  So if your home is 1500 square feet we suggest you have at least $300,000 insurance coverage on your home in case of a claim.  If you have a 3,500 square foot home you will need $700,000 dollars of insurance or more.  Could you imagine not being able to rebuild your home because you do not have enough insurance.  Home insurance is cheap in Idaho compared many other states.  So you are not looking at that much more money to insure your home correctly.  At we are trying to talk to every home owning client about the coverage on their home.  If you have not looked at the coverage on your home in the last 12 months you need to address it now!

To figure out how much insurance you need do this:

 Price/SQft * $200.00

If you have a more custom home, a log home, or a hard to get to home the cost may be more than 200 dollars a square foot.  If you are not sure call us @ 208-365-2160 for a free replacement cost estimation on your home.  You can text us at 208-228-9886 if that is easier.  Please do not put this off, your home value has skyrocketed in the last few years, make sure your insurance coverage has kept pace.  Regardless of who you buy your insurance through make sure you have this conversation if you have not already.

FAQ’s About Is Your Home Insured To a High Enough Value?

What does it mean to insure my home to a high enough value?

Insuring your home to a high enough value means that your homeowners insurance coverage is sufficient to cover the cost of rebuilding your home in the event of a total loss. This value should account for construction costs, materials, and any unique features of your home.

How do I determine the rebuild cost of my home for insurance purposes?

To determine the rebuild cost of your home, you can hire a professional appraiser or use an online rebuilding cost calculator. Factors to consider include local construction costs, the size of your home, the materials used in construction, any custom features, and the cost of labor in your area.

Is the market value of my home the same as the insured value?

No, the market value of your home is not the same as the insured value. The market value reflects what a buyer would pay for your home, including the land value, whereas the insured value is solely based on the cost to rebuild the structure of your home if it were destroyed.

What is guaranteed replacement cost coverage?

Guaranteed replacement cost coverage is an insurance policy feature that pays for the full cost of rebuilding your home after a total loss, even if this amount exceeds the policy limits. This ensures your home can be rebuilt to its previous condition without concern for inflation or increased construction costs.

How often should I review my home’s insured value?

You should review your home’s insured value at least once a year or after any significant changes to your property, such as renovations or upgrades, to ensure your coverage remains adequate.

What happens if my home is underinsured?

If your home is underinsured and you suffer a loss, you may not receive enough compensation from your insurance company to fully rebuild your home, leaving you to cover the difference out of pocket.

Can I insure my home for more than its rebuild cost?

While you can insure your home for more than its rebuild cost, it is not typically recommended because you will be paying higher premiums for coverage that you may not need. Insurance is meant to cover the cost of rebuilding and not to profit from a loss.

What factors can affect the insured value of my home over time?

Several factors can affect the insured value of your home over time, including:

    • Changes in local building codes or regulations that may require more expensive materials or construction methods.
    • Home improvements or renovations that increase the size or value of your home.
    • Inflation and increases in labor costs and materials.
  • Changes in the real estate market that affect the cost of rebuilding in your area.

Should I consider additional coverage for natural disasters?

Yes, depending on where you live, you may need additional coverage for natural disasters such as floods, earthquakes, or hurricanes, as these are often not covered under standard homeowners insurance policies. Assess your risk for these events and consider purchasing additional riders or policies to ensure full protection.

What is an insurance-to-value ratio and why is it important?

The insurance-to-value (ITV) ratio is the amount of insurance you have on your home compared to the amount of insurance you should have to fully cover the rebuild cost. It is important because having an ITV of less than 100% can result in being underinsured, while an ITV over 100% means you may be overpaying for insurance. Maintaining an accurate ITV ensures you have the right amount of coverage for your needs.

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