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You probably know Progressive has been selling Auto Insurance for quite some time now, right?  We’ve all seen the commercials with Flo, whether she’s with her family or on an adventure with a sparkly unicorn. Progressive is now offering Homeowner’s Insurance in Missouri, too! Kasmann Insurance Agency is one of the only agencies in Columbia that can now bundle your Progressive Auto Policy with a Progressive Homeowner’s product for additional savings.

Homeowner’s Dwelling Coverage

We buy home insurance to protect us from disasters, but are we buying enough, or “the right” coverage?  Most consumers are aware that an automobile loses value as soon as it is driven off the dealership sales lot, but do houses lose value? Vehicles, and certain other items (such as computers and electronics) depreciate in value after they are purchased, but houses follow a different set of guidelines.  

Actual Cash Value

Actual Cash Value is a term used in the insurance industry often (you may also see the term Fair Market Value).  It means the settlement for a loss will be depreciated based on age, wear and tear.  New vehicles typically lose about 10% of their value the moment their new owner puts one mile on the odometer.  They continue to depreciate as they age, often losing around 60% of their value in the first five years.

Replacement Cost

Unlike automobiles, homes are subject to a different set of loss settlement provisions.  Like most carriers, Progressive Home Insurance offers Replacement Cost coverage on all of their homeowners products and will not take any depreciation into consideration, as long as the home is insured for its determined Replacement Cost.  Replacement Cost is calculated by Progressive (and other companies), by using a sophisticated system that includes details, such as:  the year the property was built, the living space square footage, exterior finishes and features, interior finishes and features, as well as, the local cost of construction labor and materials.  

Replacement Cost vs. Market Value

“My house didn’t cost nearly that much!” is something we often hear when we advise a policyholder how much the calculated Replacement Cost is on their home.  Market value or appraised value is typically less than Replacement cost because the cost to buy a home is not as much as the cost to rebuild a home.  When a house is built, materials are often purchased in bulk, it is built from the bottom up, and scheduling labor is usually more efficient.  When a home is repaired, or rebuilt, materials will cost more, repair work is more labor intensive to work from the top down, there may also be building code changes, additional costs for demolition or debris removal, and existing structures, trees, etc… on the property that may limit accessibility.

Insure With the People You Trust

We know you have things to do, places to go, and that insurance is not at the top of your list of things to worry about.  Let the professional insurance agents at Kasmann Insurance Agency worry about it for you.  We love insurance just as much as Flo, and we’ll work with you to make sure you’ve got proper coverages and every applicable discount, while providing you with superb customer service.  Call us and let us see how much we can save you with a Progressive Bundle for your auto insurance and home insurance! (*Unicorns not included.)