Cincinnati home values and replacement values have fluctuated over the last few years, and knowing the difference is very important for your home owner’s insurance policy. The two values are based on different things. Your market value is the price someone will pay for your home, and your replacement cost is what it would cost to rebuild your home from scratch.

The diagram from USAA does a great job of showing the difference. It costs the same to rebuild identical houses in Cincinnati, but depending on where those houses are they would sell for different prices. If you insured your home based only on the recent tax assessment or sale price you could be under insured – considering the rising price of construction materials. It is very important for you to contact your insurance agent or insurance company and make sure that you home is insured for the replacement cost so that in the event of a disaster you are not under-insured.