Replacement cost estimator: calculating the replacement cost of your home
Calculating the replacement cost of your home may appear daunting, but numerous resources are available to assist in this task. If you aren’t using a dedicated replacement cost estimator tool, a practical starting point could be obtaining an estimate from a local contractor or referring to your property inspection report.
Collaborating with a licensed insurance agent can also be beneficial. Agents, especially those familiar with your area, might have a deeper understanding of construction costs. Additionally, many insurance companies utilize a cost to rebuild a house calculator to determine this figure. The replacement cost is significantly influenced by various characteristics of your home, some of which include:
- Age of the home: The year your home was built is a big influence since there are different building standards based on the time period when your home was built. The age of your home can give insight into what type of exterior construction you have, such as solid brick or brick veneer, or even what type of electrical equipment your home has, such as knob and tube wiring or circuit breakers.
- Square footage: Naturally, the larger your home is, the more it will cost to replace or rebuild. The higher the square footage, the higher the replacement cost.
- Home features: This encompasses everything from the type of flooring (like carpet, tile or hardwood) to roofing materials. The replacement cost is affected by these features, particularly the quality of the materials used.
- Fixtures quality: The replacement cost is also influenced by the quality of fixtures in your home, including items like countertops, cabinets and lighting fixtures. Higher-quality fixtures typically lead to a higher replacement cost.
- House style and foundation type: Complex home designs or styles and the type of foundation your home is built on (such as a slab, crawlspace or basement), can also affect the replacement cost. For example, homes with basements, particularly finished ones, might have different cost considerations.
Once your dwelling coverage amount is determined, this becomes the coverage A of your homeowners insurance policy. Multiple other policy coverage options on your homeowners policy will be affected by this amount. For example, your coverage B, also known as other structures coverage, is usually 10 percent of your coverage A amount and your coverage C, also known as personal property coverage, is usually 50 percent to 75 percent of your coverage A.
