Is My House Insured for What It's Worth on the Market?
🛑 Short answer: Nope!
Your home insurance doesn't cover the market value of your property — it covers the cost to rebuild your home after a covered loss (like a fire or major storm). That means:
🏗️ It pays for construction, demolition, cleanup, and other rebuilding expenses.
🌍 It doesn’t include the value of the land your house is on (because that doesn’t burn down).
So, while your home's market price might go up or down, your insurance is focused on what it takes to rebuild your space, not sell it.
Your home insurance doesn't cover the market value of your property — it covers the cost to rebuild your home after a covered loss (like a fire or major storm). That means:
🏗️ It pays for construction, demolition, cleanup, and other rebuilding expenses.
🌍 It doesn’t include the value of the land your house is on (because that doesn’t burn down).
So, while your home's market price might go up or down, your insurance is focused on what it takes to rebuild your space, not sell it.
Updated on: 08/04/2025
Thank you!