Why is my home insured for more than its market value?

In some instances, your coverage will exceed the market value of your home, especially if you have replacement cost coverage applied to your policy. Rather than adhering simply to the current purchase price of your home (i.e., its market value), this amount reflects the cost necessary to rebuild your home in the event of a total loss. If you’re unsure of which is stated in your policy or want to change it, contact your agent to do so.