MetLife, Your Life®

Simple Tips for Life’s Unpredictable Moments

Is Your Home Worth Its Insured Value?

With the fluctuating real estate markets, your home value may be changing rapidly. Find out if your policy covers the replacement value of your home.

Q. With real estate values changing so drastically, how can I know if my house is still worth what it is insured for?

A. It’s true that, depending on where you live, your home’s market value — the amount a buyer is willing to pay — may have risen and fallen dramatically during the past few years. But your home’s insured value is a different, more stable number: It’s the amount it would cost — including labor and materials — to rebuild your home if it were destroyed. Take a look at your insurance policy. Most likely, the insured value isn’t the same as the price you paid for your house. What accounts for the difference between insured value and market value? Often, it’s the increase in the cost of materials and labor to rebuild the home or repair the damages.

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