4 Items to Consider Prior to Remodeling

As the housing market continues to struggle Americans are finding it difficult to sell their homes. Off hand, I know 3 individuals that have had their homes on the market for over a year and have not had any potential buyers! They've tried everything. Hiring real estate agents, professional cleaners, and finally, remodeling, my friends are feeling the pain of their hard earned cash escaping their pockets.

Sinking more money into the existing home in hopes of making their home more attractive to home buyers can be a great solution. Sometimes, however, remodeling is not the route to go. Here are 4 things you should consider before remodeling your home.

http://www.usatoday.com/money/economy/housing/2010-08-27-personalfinance27_ST_N.htm

Replacement cost increases? In this market?

There is a battle being waged everyday in the offices of independent agencies across the country over what is commonly known as "inflation protection".  The idea is that a personal homeowners policy will increase the replacement value of a home year-over-year to keep up with perpetually rising costs.

Then came 2007, 2008, 2009 and now 2010, when if you've picked up a newspaper, turned on a TV or listened to the radio you would have heard something about the housing market and it's not so sunny outlook. We'll lay out the reasoning behind both arguments and discuss how that effects homeowners insurance quotes, premiums and rates.

Replacement Cost vs. Market Value

In homeowners insurance there is a constant question between insured and carrier about the amount of insurance on a home.  Insurance carriers want to insure a home for its reconstruction cost, the actual price of materials and labor to rebuild the home.  The homeowner typically thinks of his home's value in terms of market value. And while there are certainly some commonalities between the two...they are separate concepts.  We'll explore the relationship between Replacement Cost vs. Market Value next...