• Menu
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Eagle Trust Insurance

Massachusetts Auto, Home, Business, and Life Insurance Company

Header Right

Customer Login|Sign-up
617-625-8400
  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • Home
  • What We Insure
    • Overview
    • Auto Insurance
    • Homeowners Insurance
    • Renters Insurance
    • Condo Insurance
    • Business Insurance
    • Term Life Insurance
  • Get a Quote
    • Overview – All Quotes
    • Auto Quote
    • Home Quote
    • Renters Quote
    • Condo Quote
    • Dwelling Fire (Rental Property)
    • Business Insurance
    • Life Insurance Quote
  • Service Center
    • Overview
    • Billing & Payments
    • Report a Claim
    • Manage Your Policy
    • Login to CSR24
  • Resources
    • Overview
    • Glossary
    • RMV Links
    • Videos
    • Sitemap
  • About Us
    • COVID-19 (Coronavirus) Notice
    • Company Profile
    • Contact Us
    • Employment Opportunities
    • Privacy Policy & Terms of Use
    • Trusted Choice Pledge
  • Blog
  • Home
  • What We Insure
    • Overview
    • Auto Insurance
    • Homeowners Insurance
    • Renters Insurance
    • Condo Insurance
    • Business Insurance
    • Term Life Insurance
  • Get a Quote
    • Overview – All Quotes
    • Auto Quote
    • Home Quote
    • Renters Quote
    • Condo Quote
    • Dwelling Fire (Rental Property)
    • Business Insurance
    • Life Insurance Quote
  • Service Center
    • Overview
    • Billing & Payments
    • Report a Claim
    • Manage Your Policy
    • Login to CSR24
  • Resources
    • Overview
    • Glossary
    • RMV Links
    • Videos
    • Sitemap
  • About Us
    • COVID-19 (Coronavirus) Notice
    • Company Profile
    • Contact Us
    • Employment Opportunities
    • Privacy Policy & Terms of Use
    • Trusted Choice Pledge
  • Blog

Home Values Used to Calculate Insurance Premiums

Home Values Used to Calculate Insurance PremiumsMassachusetts homeowners insurance premiums are calculated based on a variety of factors. Some have to do with the home itself and others with you as a homeowners. One of the most important factors is the value of the home, but this is not based on your purchase price. Here’s what you should know about home values used to calculate insurance premiums.

Replacement Value versus Market Value

When you purchase a home, the purchase price reflects the market value. Market value fluctuates up and down with real estate market conditions. It includes both the cost of the land and building(s). This is not the same figure used for insurance purposes.

Insurance companies calculate the replacement value of your home. This would be the cost to rebuild the structure if there was a total loss due to fire or other covered incident. It does not include the value of the land on which the home sits. Thus, the replacement value is always less than the total market value of a property.

Calculating Replacement Value

Home replacement values are not static figures based on bedrooms, bathrooms, square footage, etc. After all, a high end home and a low end home could have the same amount of space but the cost to rebuild them would be very different. Insurance companies use different algorithms to estimate replacement cost. They take into account the age of the systems (roof, heating system, etc.). The purchase price may be used as well by subtracting the value of the land from that figure. Replacement value may vary slightly from one insurance company to another.

Home Values Used to Calculate Insurance Premiums – Is Yours Sufficient?

Although a lower replacement cost would result in a lower insurance premium, this is not necessarily beneficial. Homeowners should aim to have enough coverage to repair or replace their home back to it’s original condition before the disaster. A low replacement value may not provide enough funds to do so. It’s important to review your Massachusetts homeowner’s insurance coverage for both it’s covered replacement value and for what incidents are specifically covered by the policy. Don’t wait for a disaster to learn that your policy was insufficient.

 

Previous Post: « 3 Must-Have Massachusetts Insurance Options
Next Post: Personal Factors That Impact MA Auto Insurance Rates »

Primary Sidebar

Easy Insurance Quote
Need a Fast Quote?
Click the Easy Quote button above for a short quote request form with a fast telephone response from our team members!

BLOG TOPICS

  • Community Involvement (3)
  • Insurance (127)
    • Auto Insurance (71)
    • Condo Insurance (5)
    • Home Insurance (39)
    • Life Insurance (6)
    • Renters Insurance (1)
    • Umbrella Insurance (3)
  • News (24)
    • Bills & Laws (2)
    • Real Estate (6)
  • Tips (209)
    • Car Buying (6)
    • Car Maintenance (5)
    • Credit (2)
    • Driving (20)
    • Holiday (5)
    • Home Buying (8)
    • Home Ownership (85)
    • Home Selling (1)
    • Registration (2)
    • Renting (3)
    • Safety (75)
    • Teen Drivers (1)
    • Travel (5)
    • Weather (22)
  • Uncategorized (6)

Search for…

Footer

Eagle Trust Insurance

125 CambridgePark Drive, Suite 301
Cambridge, MA 02140
Phone #: (617) 625-8400
Toll-free #: (800) 390-1446
Fax Number: (617) 625-8424

Office Hours:
Monday-Friday 9am-5pm
After-hours: Calls will be handled by our emergency call center

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Quicklinks

  • Make a Payment
  • Report a Claim
  • Manage Your Policy
  • Get a Quote
  • Contact Us

Insurance Products

  • Auto Insurance
  • Homeowners Insurance
  • Business Insurance
  • Life Insurance
  • Condo Insurance
  • Renters Insurance
MA
  • Log In
  • Not Enrolled? Learn More

Copyright © 2023 · Eagle Trust Insurance · Powered by Lanergy Solutions · Log in