Here is an excerpt from a new blog post at GreggMarcus.com:
Customers always seem to ask insurance agents the following question: “How can it cost more to insure my home when my property value is declining?” This has been even more prevalent following the economic slump in the last few years. Values naturally tend to decline as the real estate markets slows up. Currently homes are not selling as quickly due to a decrease in demand which lowers the competitive aspect of selling. Homeowner’s across the country have witnessed that property values are much lower than even just a few years ago. In this post, Long Island Insurance Executive, Gregg S. Marcus will explain why this insurance phenomena seems to occur.
With home values declining, why do home insurance rates continue to increase?
One of the greatest factors that determine the cost of home insurance is the replacement value of the home being insured. The main factors that determine the replacement value of your home can vary greatly from the factors that establish your house’s market value. Replacement value of a home is the cost that it would take to rebuild your home with current construction costs and
To read this post in it’s entirety, click here to visit the Gregg Marcus official website.
