How do you determine the Coverage A, Dwelling coverage amount?
There are several ways to value your home and property. There is the appraisal, that takes in to account much more than just the dwelling. It is affected heavily by the current real estate market. There is the tax assessed value. These can be found for Deschutes County at https://dial.deschutes.org/Search/General. Which might be severely out of date and inaccurate. And then there is the insurance Replacement Cost that we derive from a Replacement Cost Estimator (RCE). This is a program that takes in to account the area that your dwelling is located in. The current construction costs in that area. It looks at things like, number of stories, type of roof, number of bathrooms, whether it’s custom or builders grade, and many more items. When this is done accurately, it will give the cost to rebuild the house in the case of a total loss. You might see price increases on your homeowners polices every year, and part of that could be from inflation guard. This automatically increases your Coverage A amount to account for rising building costs. While every carriers RCE is different than the next, you always want to insure to 100% of the value that it determines. If you make additions to extensive upgrades to your home, give us a call to update your replacement cost!