The answer may surprise you! Most people think the amount you purchase/sell the home for should match the insurance replacement cost, but insurance companies actually go by rebuilding cost. This means the insurance company will provide a replacement cost based off of number of bedrooms, bathrooms, type of flooring, additional structures and can include inflation of building materials. It is important to review your home policy every year and here at Hopmeier Evans Gage we do yearly renewal reviews to make sure your home replacement is where it should be!