Reconstruction costs typically estimates construction material, labor and equipment costs to rebuild your home at the same size and quality of construction at current prices.
There are six specific features that will impact the cost of rebuilding your home. They are:
- Total square footage of the home.
- The style of the home – ranch, contemporary, colonial, etc.
- Exterior wall construction materials – frame, brick, vinyl – and roofing.
- The number of bathrooms, kitchens and quality of the materials used.
- The garage type – attached, detached, built-in, one, two, three-car, etc.
- Special features of the home – fireplaces, patio, porches, skylights, etc.
The cost to rebuild usually differs from what you paid for your home or what you might pay for a similar home in your area. This is why market value is not used to determine the insurance coverage amount needed. Market value can be affected by many factors such as the location of your home, economic conditions and value of the land.
Rebuilding costs for insurance purposes can also differ from mortgage requirements, tax assessments, new construction costs and other appraisals of your home.
Keep your coverage up-to-date by telling your insurance agent about any updates, additions and other improvements to your home. Most updates, such as installing hardwood floors, updating a kitchen or bathroom or adding a deck, can affect the cost to rebuild.
Review your insurance policy each year to be sure it reflects the cost to rebuild. Inform your agent about any home improvements and consider that even small home improvements can affect the cost to rebuild your home.
Don’t wait until disaster happens to learn about the costs of rebuilding your home.
