Q: What is the difference between market value & replacement cost?
A: Market value is the amount a buyer would pay for the home and land in its current condition. It is influenced by factors such as proximity to good schools, local crime statistics, and the availability of similar homes.
Replacement cost is the cost to replace the entire home. When you insure your home for its estimated replacement value, your insurer will reimburse you for the cost of rebuilding your home, subject to policy limitations, based on the size and structure of the home that was lost.
Q: Does the Farmers Home Insurance Policy come standard with Sewer/Sump Pump coverage in the Fargo & West Fargo area?
A: No. Sewer/Sump Pump Coverage must be endorsed on the homeowners insurance policy.
Q: Do I really need home insurance?
A: Yes. Insurance is your protection against the many property and liability risks you face as an owner or renter. For example, if somebody sued you for an injury or damage caused by you or your property, the cost of defending that suit could run into thousands of dollars just for legal fees-regardless of the outcome of the suit. And if you were to lose your home due to a fire or to have the contents damaged or stolen, you probably could not afford to replace everything all at once. That's why mortgage lenders, as a rule, require homeowners insurance