1859 Mutual

In the narrative of our growth, Pike Mutual has penned a new chapter, merging with Woodville Mutual, and rebranding as 1859 Mutual. For a glimpse into the next pages of our story, you’re invited to continue the journey with us at our new website. https://1859mutual.com

Understanding the true value of your property can be somewhat confusing. There are several different types of property assessments that can influence your insurance premiums and real estate value. Here is what you need to know about some common real estate valuations.

APPRAISED VALUE

The appraised value is determined by an independent appraiser as part of the home buying process. This is done to ensure that the selling price of the property is in line with its actual market value. While this doesn’t affect property insurance, it will influence whether a lender is willing to fund a loan. Lenders don’t want to give out a loan that is significantly more than what the property is worth.

ASSESSED VALUE

The assessed value is used to determine your property tax expenses. The higher the assessed value, the greater your property tax burden. This amount is typically determined by your local government, and accounts for features like the square footage and quality of the structure. The assessed value is typically much lower than the actual market value.

REPLACEMENT COST

For insurance purposes, the most important number to be aware of is the replacement cost. This amount isn’t dependent on the market value of your property. Instead, it determines how much it would cost to rebuild your home if it was completely destroyed. As such, it accounts for factors like roofing, framing, HVAC, plumbing, and electrical systems, as well as contractor fees. The replacement cost is generally more than the home’s market value.

By better understanding the value of your property and how it relates to your insurance premiums, you can have peace of mind regarding your policy coverage. If you have additional questions, don’t hesitate to reach out to your agent!