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Tips to estimate rebuilding costs for your Home after Damage

Posted by All Solutions Insurance | Posted On January 17th, 2015 | General

We at ASI hope and pray that you never need to face this question. However, if you incur damages to your home due to an unfortunate incident, it merits to dwell on the below pointers before filing a claim:

How much would it cost to rebuild my home at today’s prices?

Your home is probably the single largest investment you’ll ever make. By insuring your home, you are helping to protect your investment and your equity.

Estimating your home value will help you to make a determination of the amount of insurance you will want to purchase. The primary factors that will determine the cost to rebuild your home include:

  • Local construction costs and the square footage of the structure;
  • The type of exterior wall construction — frame, masonry (brick or stone) or veneer — and the type of roof;
  • The style of the house (ranch, colonial);
  • The number of bathrooms and other rooms;
  • Attached garages, fireplaces, exterior trim and other special features like arched windows.

Here are some tips to help you estimate the value of your home:

Every year, take the time to check the value of your insurance policy against rising local building costs. Your ASI agent is available to assist you with your review of your coverage.

  1. Check the latest building codes in your community. If your home is severely damaged, you might have to rebuild it to comply with new building code standards which may require a change in design or building materials.
  2. Do not insure your home for the market value. The cost of rebuilding your house may be higher (or lower) than the price you paid for it or the price you could sell it for today.
  3. Some banks require you to buy homeowners insurance to cover the amount of your mortgage. Make sure it’s also enough to cover the cost of rebuilding.
  4. Increase the limit of your policy if you make improvements or additions to your house. You may upgrade features in your home to fit your tastes and lifestyle. These enhancements can significantly increase the replacement cost of your home. Your ASI agent will be available to help you in your determination as to whether additional coverage is needed.

What would it cost to replace the contents or personal belongings of my home?

If the unexpected happens, losing your home contents could be distressing as well as financially devastating. Your ASI homeowners, Townhouse, Condo and Renters policies cover the loss of your personal belongings, subject to the policy limits and conditions.

There are two distinct ways to insure your personal possessions:

  • Replacement cost coverage. This coverage pays you the dollar amount needed to replace personal property without any deduction for depreciation, but is limited to a maximum dollar amount.
  • Actual cash value. This coverage pays you an amount equal to the replacement value of damaged property minus depreciation. Unless a homeowners policy specifies that property is covered for its replacement value, the coverage is for actual cash value.

Many people make the mistake of underestimating the value of their home contents. This mistake is easily made when you consider the amount of new items we purchase each year. Under-insurance can lead to heartache and inconvenience should the unexpected happen. Please contact an ASI expert today by clicking here or call 951-247-2003 for all your insurance requirements and for a free rate quote.

Categories: General

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