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hi penny here a common misconception amongst policyholders in todayamp;#39;s insurance marketplace is the difference between market value and replacement cost although these terms may sound similar they are very different market value refers to the cost someone is willing to pay for your home based on subjective features such as location and proximity to school and work replacement costs refers to the cost of rebuilding your home including labor and materials at todayamp;#39;s prices in the insurance marketplace your local insurance agent should recommend your home be insured for its replacement cost by adhering to replacement cost calculations you and your family can rest easy knowing you will have the funds to rebuild in the event of a loss should you wish to have a detailed review of your policy and how your replacement cost calculations were determined please contact your local insurance agent for assistance until next time and remember information from penny today can sa