A: A combination of resources are used to verify the cost of rebuilding a customer’s home. It is important to make the distinction between the home value and cost to rebuild or replace as these two will be different. Home value is more likely to be from a home sale perspective while the cost to rebuild, which the insurance industry focuses on, involves what would be the construction cost to rebuild the home if it was totally destroyed. Valuation analysis from existing sources as well as estimated replacement cost software are used to develop the replacement cost value of the home.

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