Home Insurance - Rebuilding a Home

You can use your insurance payment to cover the cost of rebuilding your home if it lost in a disaster. You will be able to collect money from your insurance policy, every policy will be different so you will need to refer to your policy limit. You will typically receive funds to stay in a hotel or rental facility while your home is being rebuilt. However, this depends on your policy. When you are considering rebuilding after a total loss, think the decision through:

  • Is the housing market currently depressed? If so, you may be able to use the money to move to a better location. Take advantage of cheap prices to get into a better home.
  • Was the loss of your home a personal tragedy? Many times, we think that by replacing what we lost, we will fill a void, but that is not the case. Many home owners report regret when they rebuilt a home due to a personal tragedy because it was emotionally haunting and trying. Sometimes, when a bad thing has happened there, it is best to leave. Take your time to consider your choices, preferably with the assistance of a licensed therapist.
  • Are you thinking to the future? Think about the upgrades you will add to your home to make it more appropriate for you in the years to come. You may find there are many changes you would like to make instead of replacing the exact floor plan. For example, older homes have dining rooms and modern homes have replaced them with a family or great room.