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You should only have coverage on your homeowners insurance policy to cover the REPLACEMENT COST of the house. Market value incudes inflation as well as the land. These items are not covered in the policy.

AnswerWe own two houses, one in a small town in western Kansas and the other in a small city in central Kansas. If they were both in the same location, they would probably be valued approximately equally, but in the small town that would be $45 - 50 thousand while in the city either would bring almost twice as much. However, the insurance on each is about $75 thousand, which is the insurance company's estimated cost to rebuild a similar home.

Yes you should increase your your insurance coverage for replacement value at least. Some policies have platinum policies which are 110% of replacement value. The coverage is for the physical home. Most homeowners insurance policies include an escalation clause that will increase the coverage on your home periodically. This will occur due to rising supply building costs as well as labor. Both contribute to home costs that must be considered.

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โˆ™ 2012-08-28 10:51:56
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Q: If your home has increased in value due to the real estate market should you increase the coverage amount?
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Related questions

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Your real estate tax can increase whenever one of four things happens: (1) your real estate assessment increases (usually a result of increased market value of real estate); (2) the taxing agencies increase the real estate tax rates that are levied against real estate assessments; (3) you no longer qualify for an assessment or real estate tax abatement, deferral, or exemption; and (4) changes in real estate tax laws or sunset legislation no longer allows assessment or real estate tax caps to apply. A combination of one or more of these can also occur. For example, real estate assessments can decline as a result of weakness in the real estate market but tax rates increase so that the actual amount of real estate taxes you pay will be more than the previous year.


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The amount of taxable inheritance depends on the entire estate. If the amount of the estate that the 60,000 was inherited from is over 2 million dollars then the income is taxable. If the estate was worth less then that then there are no taxes on the estate.


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In the United States, what is known as estate tax is imposed upon the taxable estate of a person when they die. A substantial amount of property can be left to someone tax free, so in a lot of circumstances, there is no estate tax to pay. In 2013, the personal allowance is $5.25 million. This amount is likely to increase over the years, as it's subject to inflation.


What does dcr stand for in real estate?

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What medical insurance options are there for children after the death of a working parent?

If the child and/or the estate has the funds to pay for the coverage the child can apply for individual coverage or take Cobra coverage. Even though the employee has passed any other family members on the plan at the time are eligible for Cobra coverage.


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No. You will have to use the 1040 tax form along with schedule L of the 1040 tax form for this purpose if you would like to increase your standard deduction amount and decrease your federal income tax liability by using the limited amount of any property (real estate taxes) taxes that you paid during the previous tax year.


If an agent suggests for you to get a 10 year term insurance policy of 150k can you decide to get in the amount of 5 million instead?

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Do I have to give my dad's girlfriend who has a life estate in his house the amount her estate is worth when we sell?

Talk with your lawyer immediately.


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How was the third estate treated unfairly?

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How do you determine the gross amount of an estate in NJ?

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Can an executor of an estate sell the house for an amount that is not agreed upon?

The executor is responsible to the estate and the court. They do not have to have permission or agreement on anything.


Can executor who is also a beneficiary get an advance payment from the estate?

The executor is, by law, entitled to be paid for their time. The rate is often set by law and the probate judge has to approve the distribution. If they have properly documented their time, it is reasonable to bill the estate and collect it. This amount is separate from the amount they are to receive from the estate.


What happened to the size of the family's estate from generation to generation in China?

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How do you divide an estate when two of three heirs owe money to the estate?

The value of the estate, which includes the debts owed to it as well as the debts the estate owes, is divided up into three parts. The amount those that owe the estate money receive is off-set against the debt. If there are more debts owed by the estate then it is worth, those owing money will have to pay it to the estate.


What can you do when all heirs to an estate are willing to sell the property except for one and he is the executor of the estate?

The executor is the person responsible for the estate. That includes making sure the property is sold for a proper amount.


What amount can I give to my children per year that is tax free?

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