Reinstatement / rebuild cost Or market value in Home Insurance?

[ag35]

Wanted to know more about the reinstatement / rebuild cost and market value in Home Insurance. Which one to opt for and why?

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[Madhura]

Rebuild costs are NOT the same as a property's market value. In fact, market value is often higher than the rebuild costs because the market value of your property includes the land on which it sits and land accounts for roughly one-third of the market value. Rebuild costs do not include the value of the land because often when a building is destroyed the land is unaffected and so can be rebuilt upon.

[Raja]

Wanted to know more about the reinstatement / rebuild cost and market value in Home Insurance. Which one to opt for and why?

Always go for "Reinstatement / rebuild cost" option.