The premiums have gone down in response to safer cars, stepped up fraud enforcement and more conservative court awards from lawsuits. But those price dips have not affected everyone uniformly. Drivers here were told to expect to see hikes averaging 2.6 percent. The company said it was because the cost of liability, medical claims and uninsured motorist claims were all going up in the county. The difference is critical to understand.
Replacement value is the cost of fixing damage to part of a home or the entire home.
The market value is not important in the insurance world since it is volatile and may have no bearing on what it will cost to get your house back in shape. As time goes by, new building ordinances come into play and they seriously impact the replacement value of a home. John O. Bronson Co. Insurance in Sacramento. Now ordinances call for double-pane windows. The difference in cost to replace those windows will come out of the policyholder's pocket unless the home insurance policy has replacement-cost coverage.