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Donnelly and Sproul, an independent, multi-line insurance agency, has been proudly serving the insurance needs of families in New Jersey, New York, and Pennsylvania since 1927. As we approach our 90th year of service, we’re proudly planning the next 90 and this begins with providing outstanding insurance protection to the people we serve.
Many people make the mistake of believing they only need to insure the market value, or the purchase price, of their home or business properties. After all, there’s a lot that goes into determining the actual market value of the property.
Unfortunately, the amount of money required to buy an existing structure is an entirely different number than what it takes to actually rebuild a home that has been destroyed. This means that you can’t rely on the market value of your home to determine how much insurance coverage you need.
Why are the numbers so different?
There are many mitigating factors that go into determining the insurance to value (ITV) of a building. For homeowners, those factors can be any and all of those listed below:
All of these factors impact either the current value of your home or the potential costs involved in rebuilding your home. More often than not, insurance for the market value of your home will not cover the full costs involved in rebuilding your home.
Businesses face many of the same challenges and issues when it comes to insurance to value, so keep them in mind as you work with your insurance agency to determine how much insurance your business really needs. Be aware, the ITV is often significantly higher than the market value of the business (or home).
Some insurers prefer to revisit these numbers yearly in an attempt to insure adequate coverage for the home and its contents. However, you may be wise to do so after any major home improvement project, renovation, or remodel that could impact the actual value of your home.
What types of improvements change the value of your home or business structure?
Truthfully, any type of improvement can account for big changes in the value of your home (or business). The following are a few prime examples.
If you’re not adequately covered when losses occur, you’ll lose the full value and benefit of the improvements you’ve worked so hard to make to your home and, possibly, more.
While the numbers may be mindboggling to you, we have complex tools to help determine the ITV for your home or business. This is why it’s important to work with an agency you know and trust rather than a nameless big box agency with 800 numbers and call centers.