What's the difference?

Market Value is the amount buyers are willing to pay for a home.  That value includes the land, landscaping, and other buildings on the property.  Market Value may also be affected by the quality of neighborhood and schools, as well as the community where the home is located.  Depending on the supply and demand conditions in the real estate market, you could pay more or less than the actual cost to build the home. 

Replacement Cost is the amount it would take to rebuild your home with similar materials and craftmanship.  This amount also includes the cost of labor, permits, fees, contractor overhead and profit, as well as debris removal.  These are all needed in order to rebuild your home as it was before a loss.  Nearly 60% of homes are underinsured*.

*Marshall & Swift/Boeckh

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