The term Reinstatement value refers to the costs that would be involved if a homeowner were to rebuild a building and / or piece of property using the same materials and putting it together in the same way. Reinstatement value is different from the actual value of a home.

In fact, reinstatement value and actual value have fairly little to do with each other. Actual home value is important when assessing how much the property can be sold for. The only time reinstatement value is important to a homeowner is in regards to insuring their home against catastrophe.

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