\When you insure your home, one of the most important decisions you’ll make is how the value of your property is calculated. And if your home is custom-built or includes high-end materials, that decision could make or break your ability to rebuild after a loss.

Many homeowners assume that if their insurance covers the market value of the home, they’re protected. But in reality, market value and replacement cost are two completely different things. And if you don’t have the right coverage, you could be left with a significant shortfall.

What Is Market Value?

Market value is the amount your home could sell for today, based on location, real estate demand, and comparable properties.

It includes:

- The value of the land

- The structure of the home

- The impact of nearby schools, neighborhoods, and market conditions

Market value fluctuates depending on economic conditions and has little to do with the actual cost to rebuild your home from the ground up.

What Is Replacement Cost?

Replacement cost is the amount it would take to rebuild your home exactly as it was, using the same materials, design, and craftsmanship—regardless of the market.

It includes:

- Custom cabinetry and millwork

- High-end flooring and finishes

- Specialty lighting and fixtures

- Structural design and layout

- Permits, materials, and labor at today’s prices

Why it matters: If you’ve built a $1.2M home with premium materials and your insurance only covers $900K in replacement cost, you could be forced to rebuild with builder-grade finishes or come out of pocket for the difference.

The Costly Mistake Most Homeowners Make

Here’s where things go wrong:

- You insure your home based on what you paid for it—not what it would cost to rebuild.

- Your insurance agent doesn’t ask detailed questions about your finishes or design.

- You make renovations or upgrades and forget to update your policy.

The result: After a fire, storm, or major loss, your insurer covers part of the rebuild—but not the custom work, high-end details, or full structure. And you’re stuck making painful compromises.

What to Do Instead: Get a Replacement Cost Audit

At Concierge Insurance Group, we work with families who own custom-built homes throughout Georgia. We specialize in:

- Evaluating actual replacement cost (not guesswork or outdated formulas)

- Working with appraisers, builders, and underwriters to validate values

- Ensuring you’re covered for what it really costs to rebuild—no matter what

Whether your home is $750K or $3M+, we build a policy that reflects its true value.

Don’t Find Out the Hard Way

Insurance is a promise. But that promise only matters if the numbers are right.

If you’ve never reviewed your replacement cost, you may not be as protected as you think.