Hey {first_name}

Here's a question I sometimes get: If I can sell my house for only $165,000 why does my insurance company recommend that I insure it for $289,000?

Good question. Insurance is not really concerned with the market value of your home. It's all about the cost of rebuilding your home should the need arise. The Replacement Cost (rebuilding cost) calculates how much it would cost to rebuild your home using today's material and labor costs, and in our area that number is almost always higher than what you can sell your house for. Thus insurance companies recommend that you insure your home for Replacement Cost.     

If I can ever help you with insurance please let me know. 
 

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