Ever wonder why your house is insured for higher than what you could actually sell it for? The replacement cost and market value of your home are like comparing apples to oranges; they are not even related.
You insure your home for what it cost to rebuild, not what it cost to sell.
To give you an example of this, $325,000 is used to rebuild your home not what we can sell your house for. You could have a house that is worth $1 million, but to rebuild that house it might only cost $800,000. You insure your home for what it cost to rebuild, not what it cost to sell.