How do insurance companies value your home?


Staff member
The single the most important factors when you insure your home is your "cost to rebuild". This is the amount of money that any insurance company will pay to replace your home and is the basis for all other coverages on your policy. If your current insurance agent does not talk to you about your "Coverage A" (the insurance term for the amount of money a insurance company will pay to replace your home) you should consider switching companies or calling your current agent. The cost to rebuild you home changes over time as labor costs go up as well as material prices.

At Riverside Farmers Insurance we believe in insuring your home with the most accurate estimate possible. Our company uses a software program called "Value 360", this software uses advanced analytics to value your homes replacement cost.

Value 360 arrives at your replacement cost though accessing information through:
1. The Maryland tax records
2. Neighborhood build trends
3. Cost of material in our geographical location
4. Cost of labor in our geographical location
5. Value of homes in your particular neighborhood

It is important to remember that replacement cost does not factor in:
1. The retail price that you can sell your home for
2. The cost of land
3. The cost of other structures on your property (there is another coverage for those items)
4. Driveways of other paved property

Below is a article and some reconstruction estimators from the Maryland Insurance Administration. Before you price your next home insurance policy check the value to rebuild your home, it can save you thousands in the event of a claim!

Homeowner Reconstruction Cost Estimators
Your home usually represents the single largest financial investment you have ever made and, as such, it should be adequately protected. One of the best ways to protect it is to purchase homeowners insurance. You will want an insurance policy to provide you with sufficient coverage to replace your home if it is severely damaged or destroyed as a result of a covered loss such as a fire. In other words, you want to be insured to value. "Insured to Value" is an insurance term that means you have sufficient coverage on your home to cover the cost of rebuilding following a loss; the full reconstruction cost of the home.

A major challenge most homeowners face is finding an accurate way to calculate the current reconstruction cost of their home. The purchase price of your home, or homes in your neighborhood, is not an accurate way to determine the cost to rebuild your home, since that cost does not include your land. Further, the cost to rebuild your home is not the same as new construction costs, since debris removal will be involved and other issues that are not associated with new construction.

A more accurate and complete approach for consumers to use when attempting to determine the reconstruction cost of their home is to access one or more of the Home Reconstruction Website Calculators listed below. These calculators provide home valuation methods very similar to what insurance companies use when calculating the value of a home they insure. The calculators are very easy to use. After you answer various questions, it will provide you with the current cost to rebuild your home, based upon the information you provided.
By Xactware, Inc.
Requires a log in and a fee; estimate is based upon your home's specific construction and details.
Bluebook International
Requires a fee; estimate is based on zip code or neighborhood and some of the home's details.

Your local Farmers Insurance agent is:
Kevin Bobkoskie - Riverside Farmers- Bobkoskie Agency
22888 Three Notch Rd Suite 301
California, MD 20619
800-916-1945 (Office)
410-610-7062 (Mobile)
Email: kbobkoskie(at)