[villages07]

My insurance company initially did purchase price - land value (which should equal cost to rebuild the house); on my one year anniversary, they increased this dwelling replacement coverage by 10% and said they factored in price changes in labor and materials. As someone else mentioned in another post, I guess you should notify your insurance company of any major additions or renovations so that they can be factored in and be sure they are covered.

On a related, side note....those of you with Travellers through the Villages Insurance... if you've gotten a renewal lately with a hefty increase (mine was 50%), make sure you check out the windstorm mitigation inspection you can have done. In my case, it not only eliminated the 50% increase, but also decreased my premiums by 20% over what they were a year ago. It's mentioned in the renewal notice but not very clearly or strongly to spur people to action. The inspection costs between $60-$100 and there is also a program through the state where you can have it done for free. It's well worth it for Travellers. Supposedly, ASI builds these protection factors into their premiums, but, wouldn't hurt to ask your agent if inspection would be worthwhile.