River Valley Insurance Agency Inc
  • Home
  • Quotes
    • Auto Quotes >
      • Auto Insurance Quote
      • ATV Insurance Quote
      • Boat Insurance Quote
      • Classic Car Insurance Quote
      • Motorcycle Quote
      • RV Insurance Quote
    • Property Quotes >
      • Home Insurance Quote
      • Renters Insurance Quote
      • Flood Insurance Quote
      • Landlords Insurance Quote
    • Business Quotes >
      • Business Insurance Quote
      • Business Owners Package (BOP) Insurance Quote
      • Insurance Bond Quote
      • Workers Compensation Quote
    • Life & Financial Quotes >
      • Life Insurance Quote
      • Annuity Quotes
      • Final Expense Insurance Quote
      • Umbrella Insurance Quote
  • Service
    • File a Claim
    • Customer Portal
    • Update Contact Info
    • Policy Changes
    • Proof of Insurance
    • Policy Review
    • Contact My Carrier
    • Free Consultation
    • Online Documents
  • Insurance
    • Vehicles >
      • Auto Insurance
      • ATV Insurance
      • Boat Insurance
      • Classic Car Insurance
      • Motorcycle Insurance
      • RV Insurance
    • Property >
      • Home Insurance
      • Renters Insurance
      • Flood Insurance
      • Landlords Insurance
    • Business >
      • Business Insurance
      • Business Owners Package (BOP) Insurance
      • Insurance Bonds
      • Workers Compensation
    • Life/Financial >
      • Life Insurance
      • Annuities
      • Final Expense Insurance
      • Umbrella Insurance
  • About
    • Meet Our Team
    • Refer a Friend
    • Local Links
    • Insurance Carriers
    • Agency Photo Gallery
    • News
    • Blog
  • Contact

River Valley Insurance Agency Inc Blog

Market Value vs. Replacement Cost

4/11/2017

0 Comments

 
In this crazy, upside-down real estate market most home buyers are confused in regards to the amount of insurance coverage they need on their homes. Most people are in disbelief when they learn that they need $225,000 of insurance on a home that they just purchased for $150,000. This is a discussion I have with clients several times a week. The fact of the matter is, the way the current housing market sits today, it costs more to build a new home then it does to buy an existing one.

I’d like to start by clearing up some common misconceptions: First, even though home prices have fallen, the price of building materials have either stayed the same or increased.  Second, many contractors have left the construction field altogether so a surplus of contractors ready to work at discounted prices is simply not the case.  In addition, reconstruction becomes more expensive due the following: 
  •  Demolition 
  •  Top Down vs. Ground Up Construction 
  •  Building Code Updates 
  • Economies of Scale for Labor and Supplies 
  
Even though you may be frustrated that you need more insurance then the market value of your home, please make sure that your home is insured properly. An insurance professional should be able to guide you into finding a product that has the proper protection and you might be pleasantly surprised with an affordable rate.    ​
0 Comments



Leave a Reply.

    Contact Us

    (616) 301-9500​
    O-11282 Tallmadge Woods Dr NW
    Grand Rapids, MI 49534​
    Click Here to Email Us

    Archives

    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    February 2015

    Categories

    All
    Auto Insurance
    Business Insurance
    Homeowner's Insurance
    Insurance
    Insurance Bond
    Liability Insurance
    Life Insurance
    Safety
    Umbrella

    RSS Feed

Navigation

Homepage
Insurance Quotes
Policy Service
Insurance Products
Contact Us
Agent Login

Connect With Us

Share This Page

Grand Rapids Office

River Valley Insurance Agency Inc
O-11282 Tallmadge Woods Dr NW
Grand Rapids, MI 49534
(616) 301-9500
Click Here to Email Us

Coopersville Office

River Valley Insurance Agency Inc
905 O'Malley Dr.
Coopersville, MI 49404

Website by InsuranceSplash
  • Home
  • Quotes
    • Auto Quotes >
      • Auto Insurance Quote
      • ATV Insurance Quote
      • Boat Insurance Quote
      • Classic Car Insurance Quote
      • Motorcycle Quote
      • RV Insurance Quote
    • Property Quotes >
      • Home Insurance Quote
      • Renters Insurance Quote
      • Flood Insurance Quote
      • Landlords Insurance Quote
    • Business Quotes >
      • Business Insurance Quote
      • Business Owners Package (BOP) Insurance Quote
      • Insurance Bond Quote
      • Workers Compensation Quote
    • Life & Financial Quotes >
      • Life Insurance Quote
      • Annuity Quotes
      • Final Expense Insurance Quote
      • Umbrella Insurance Quote
  • Service
    • File a Claim
    • Customer Portal
    • Update Contact Info
    • Policy Changes
    • Proof of Insurance
    • Policy Review
    • Contact My Carrier
    • Free Consultation
    • Online Documents
  • Insurance
    • Vehicles >
      • Auto Insurance
      • ATV Insurance
      • Boat Insurance
      • Classic Car Insurance
      • Motorcycle Insurance
      • RV Insurance
    • Property >
      • Home Insurance
      • Renters Insurance
      • Flood Insurance
      • Landlords Insurance
    • Business >
      • Business Insurance
      • Business Owners Package (BOP) Insurance
      • Insurance Bonds
      • Workers Compensation
    • Life/Financial >
      • Life Insurance
      • Annuities
      • Final Expense Insurance
      • Umbrella Insurance
  • About
    • Meet Our Team
    • Refer a Friend
    • Local Links
    • Insurance Carriers
    • Agency Photo Gallery
    • News
    • Blog
  • Contact