What Factors Determine The Insurance Protection You Need On Your Home? 
In order to determine the proper protection on your home insurance carriers or more specifically the agents will runreplacementcost estimators on the home . Thereplacementcost estimator will determine what it will cost to rebuild a home in the event of a total loss . Thisfigurehas no bearing on what the market value of a home is . In California you see market values of homes ranging on average around $ 800,000 . However the actual construction cost to rebuild may only be $ 450,000 since land is not taken into consideration . The reverse can also be true . The market may have sunk in a given area so that same house is now only worth $ 200,000 on the market but it still costs $ 450,000 to rebuild since the cost of construction has not changed . Always have a discussion with your agent about the details of your home so a proper replacement amount can be determined and you are properly insured . 