Market Value & Reinstatement Value ?

I am applying for home insurance for my society flat. While filling up the proposal form there was a term Market Value & Reinstatement Value. After discussion with my agent, I have ticked at the column next to Reinstatement Value. But still I am confuse, whether I have selected the right choice. :confused:

Please advice -
1- What is difference between Market Value & Reinstatement Value?
2- Which option we have to select?

Quote:

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Originally Posted by KapilPrateek

1- What is difference between Market Value & Reinstatement Value?
2- Which option we have to select?

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Market Value : Market value of the home is the one which arrived at after applying the depreciation for the age and the salvage value.

Re-instatement Value: Reinstatement value of the product is the one which prevailing as on the date of replacement.

For building go for market value and for contents Re-instatement Value.

Go for Reinstatement value.