Every home is unique. Because of this, when it comes to insurance it makes sense to work with someone who can provide the most options. An experienced insurance broker ensures you access to the most comprehensive coverage and competitive rates available. When you’re looking for home insurance in Calgary, brokers with lots of knowledge of the local market are your best bet. Bow Valley Insurance has more than 34 years of history serving Calgary and Alberta’s insurance needs.
Home Insurance in Calgary is About More Than the Real Estate Market
Your home’s market value and its replacement cost are two very different things. Insurance companies always insure the property for its replacement or rebuilding cost and not the market value.
The market value of your home fluctuates with the housing market, supply & demand, the local economy, job market etc. It is best described as the price a buyer is willing to pay for your home including the value of the lot.
A home’s replacement cost is calculated upon what the total expenses would be if a builder would have to reconstruct the home from its current damaged state. Home insurance in Calgary – and Alberta – is based upon replacement.
A home insurance professional can help you determine the correct rebuilding value through a Home Evaluation.
When calculating replacement cost several factors are taken into account i.e. square footage, number of bathrooms, fireplaces, decks, finished basement, type of flooring, roof, siding etc. Replacement cost home insurance will rebuild your house – if destroyed – to the same condition that it was, and includes variables like the current cost of sufficiently skilled labour, debris removal, and extra expenses due to more stringent building codes.
Coverage for your items and valuables works differently. When looking for coverage for your belongings, you will have the choice between replacement cost and actual cash value insurance. In this case, replacement cost coverage will replace your items in new condition. Actual cash value insurance takes depreciation into consideration, and will value items accordingly.
At Bow Valley Insurance, our experienced knowledgeable staff can assist you in calculating the current replacement cost and ensure your home is adequately protected by your policy. If you’re looking for home insurance in Calgary, find out several ways to save.