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[Music] todays question is what is the difference between market value and replacement costs when it comes to your hand its important to know the difference because they mean two different things and a lot of times people will assume that the coverage on their home is what they should sell their house for or what they bought their house for well thats actually not the case market value is for example what you buy and sell homes for its what the Lots worth what the comps in the neighborhood are going for it actually has nothing to do with insurance insurance however is a replacement cost replacement cost takes into consideration not necessarily the lot but the cost of materials drywall sheetrock two buffers permits surveys contractor fees all of that is what goes into the house if you had to rebuild it so thats what insurance should be again land is not included its more construction costs using modern materials and current methods to rebuild your house whats also important to kn