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80 Rule Home Insurance


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80 Rule Home Insurance. We’ll explain the ins and outs of the 80% rule and offer some tips to help you assess whether or not you’re adequately covered. The 80% rule ensures homeowners insure their home for at least 80% of its replacement cost to avoid paying a share of repair costs.

What is the 80 Rule in Homeowners Insurance? Kiplinger
What is the 80 Rule in Homeowners Insurance? Kiplinger from www.kiplinger.com

Replacement cost is based on current construction costs, while market value is influenced by factors like location and buyer demand. Either way, the 80% rule suggests that your homeowner’s insurance needs to cover at least 80% of the total replacement cost of your home’s current value. There are two valuation options available when purchasing insurance on your home.

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What is the 80 Rule in Homeowners Insurance? Kiplinger

To make sure you have the best safety net possible, keep your coverage at least 80% of your home’s total replacement cost to meet what’s known as the 80% coinsurance rule. Replacement cost is based on current construction costs, while market value is influenced by factors like location and buyer demand. When it comes to insuring your home, the 80% rule is an important guideline to keep in mind. To make sure you have the best safety net possible, keep your coverage at least 80% of your home’s total replacement cost to meet what’s known as the 80% coinsurance rule.

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