Many homeowners equate the “worth” of a home to its market value, especially if the home was recent purchase. While market value is a valid calculation of a home’s worth for buying and selling, it has little to do with the cost of rebuilding. The estimate we provide is the amount to reconstruct the home at today’s costs.
Rebuilding a home includes many factors and expenses not considered in new construction. The following issues are contemplated in our Replacement Cost Estimation: Economies of Scale, Top-down versus bottom-up, Demolition and debris removal, Use of labor, Access to worksite, Building code changes, Natural disasters, Protecting undamaged parts of the home and contents, Specialized labor, and Replicating old construction methods and materials.
Contact our office today to discuss whether you are carrying the correct limit on your current Homeowner’s policy!