When you buy a home, insurance is an important component. If you are like most homeowners, you are always looking for ways to save money. If you are looking to lower your homeowners insurance costs, then you need to make sure that you don’t confuse cost and value.
Is There a Difference Between Cost and Value?
What some homeowners confuse is the cost of the house versus the cost of rebuilding the home. You want to include the cost of how much it will take to replace or rebuild after a disaster. When you include this number, you will pay a lesser premium than if you were to include the value of your home. The higher the price you include, the higher your premium will be.
