When it comes to determining how much home insurance you need, you may be wondering what goes into the process of estimating your home's actual value. Home insurance can generally only cover your home up to its value. However, establishing that base value can be tough. 

Most often, insurance providers use a comparative market analysis for your immediate area to determine value. Your mortgage debt can be a factor as well. In short, your home is compared to others that have sold or were priced recently and adjusted based on its features. Some of the key areas in which your home's value can be impacted include the following: 

1. The size of your home, specifically the number of rooms and square footage, will impact its value. Insurers need to know just how expansive the home is. 

2. The more square footage, the more value is assessed. Square footage will include the whole home, including the basement in most cases. 
 
3. The home's style is also a factor. Modern looks tend to add more value to a home. 

4. Local construction costs can play a role in this decision as well. If you have replacement home coverage, this means the insurer can pay to have the home rebuilt. However, it’s important to consider that Construction costs will vary significantly from one area to the next. 
 
5. Additional structures on the property can also impact home value. For example, if you have a separate garage, barn or outbuilding, these structures will also need to be covered by insurance. Therefore, their combined value needs to be factored into the value of your home. 

6. Special features do matter. Whether it is a large, built-in patio or an add-on sauna, these additional features impact the value of your home. 

As a homeowner, your expectation for home value is generally different than what your insurance provider may estimate. Nevertheless, your home insurance policy needs to be comprehensive enough to protect your investment. 

Have you assessed your home’s value? Call Matt Roenker Insurance Agency at 757-671-1111 for more information on Virginia Beach home insurance.