How to estimate replacement cost? Kevin Knudtson asked 1 year ago
How to estimate replacement cost?

I live in a high cost area (SF Bay Area) in a 110-year-old home with many features that would not be included in the typical home used for ballpark new construction cost estimates (wood floors with inlays, built-in cabinetry, wood frame windows, etc.). If my house burned to the ground the cost to rebuild a house with similar finishes and up to current code would be significant.

How can I find good data for estimating the replacement cost of my home? My insurer provides estimates but I’d like to double check that their estimates don’t leave me underinsured.

1 Answers
Karl Susman Karl Susman Expert answered 1 year ago

That sounds like a gorgeous home! I can understand why you want to ensure you have adequate coverage for it. Since your home is currently insured, I would request your insurer come out and do a full onsite inspection and appraisal. The best protection can be having the people or company you might be requesting to rebuild your home after a claim having first-hand knowledge of what is there now. By doing this, if there is a loss, there will be less confusion over what was there and as importantly, they will advise you based on their own assessments and inspection on the amount of coverage they feel is required to properly insure the home. I would think, in the event of a loss, you would be in a strong position to be able to say “rebuild it” since they will have seen it, and provided you what they believe to be the amount of coverage you would need to do so.

Not all insurers will immediately jump at the request to spend money on an inspection, however I have found if you push a bit they will.

Best –

Karl Susman