Will You Be Able To Rebuild Your Home After a Fire????

Construction Costs

I am amazed to say that it seems like every year now construction costs are going up and rather quickly. I am certainly no construction expert but sources seem to indicate a continual increase with no relief in site.

We use software in our business to help determine a replacement cost for a piece of property like a home. This software calculates the price it would cost to rebuild a home starting from scratch. I know most people are quite surprised when we tell them the rebuilding price. I've seen some people's homes under insured by more than $60,000 and that's on a home with a replacement cost of less than $250,000. How happy would you be if your home burned down and the insurance company only paid to rebuild 2/3rds of it?

I guess I'm recommending you either get a contractor to give you an estimate on rebuilding your home or you ask your agent to calculate a new replacement cost estimate. While it is ultimately up to you to determine how much to insure your house for, an agent should be able to provide you with some assistance with the figure.

I know we all want to pay as little as possible for insurance, but you want your insurance to actually reimburse you for your loss. Make sure you insure your home properly.