Re: homeowners insurance
04-09-2012 02:42 PM
IMO i think it is an appropriate amount.
However, it really depends in the area you live in. If the cost to build for example is $130/sqft for a 4000 sqft home, the RCT would be $520k. I would ask your agent what the RCT per sqft in the area is and see what you come up with. The great thing about RCT is you get like quality like kind.
You can insure for Actual Cash Value, but personally it is not worth it. You would only get the value of the home itself not including the land, which is what ACV policies cover you for.
Most lenders like for you to insure your home with guaranteed RCT.
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