Replacement cost is based on materials and labor. If a major hurricane hits or another natural disaster even if it is not near you will affect those costs. If you lower your replacement cost coverage, ask your agent what will happen if the home burns down and the coverage is not enough. The answer will tell you alot about the agent and the company. Also in writing is always recommended. I know, that goes without saying but I said it anyway.

The Home Insurance Specialists

Marc and Bill have good thoughts. Also remember Value from the county is Jan of the year. So you need to make sure your value is Jan 2009 not Jan 2008 as we have had a DROP of about 25% or more during 2008.
Also, I am among those that thinks we are heading to a 10% inflation rate. This will change lots of things.
You should know I am an Economist, therefore I am always wrong.

John

Dear Victoria,

This is something that should be done by all on an ongoing basis. Too many people as it is insure their properties for too much. You have to remember that you should be insuring the home and not the land. The land will still be there even if something unfortunately happened to the house. I always try to insure my home for an adequate replacement amount with a low deductible and higher liability coverage, just in case. Additionally, many agents will go by the Just Value of the home according to the property appraiser. Yours for the 2008 tax year was listed at a little over $275K.

If you have any additional questions or I may be of assistance, do not hesitate to contact me.

Best Regards,
Marc Grossman, GRI
407-463-1034
marc@OrlandoHomes-4u.com

Blogs: http://www.RealEstateMorsels.com
http://www.RealEstateOffTheLeash.com
http://www.RealEstateCracker.com

Victoria,

Our recommendation is to contact your agent and ask for a review of your entire policy making sure your policy does what you need it to do. Many people assume they have coverage that includes certain damage but find out too late they do not.

Ask your agent to outline for you exactly what is and isnot covered by your current policy. This would be an opportune time to inquire about adjusting your coverage.

Check out this website: http://www.flgov.com/shop4insurance

Good luck