Understanding the Cost to Rebuild

Your home is one of your most valuable assets. Make sure you have enough dwelling coverage on your homeowners insurance policy to rebuild it to its original state if it’s destroyed by fire or other covered cause of loss. While the current market value of your home may be lower than you like, the cost to rebuild may be higher than you think.

The cost to rebuild your home is based on a number of factors and can often be higher than the potential selling price of your home. That’s because the price of building materials may have increased over the past few years while the value of real estate has decreased.

Key factors that impact the cost to rebuild your home include:

    • Total living area (square footage of home)
    • Style of home (ranch, contemporary, colonial)
    • Exterior wall construction (frame, brick, block)
    • Number of kitchens and bathrooms and quality of materials
    • Garage type (attached, detached, built-in)
    • Special features (fireplaces, porches, skylights, pools, porches)
    • Additions or enhancements

Costs to rebuild your home often differ from home market values, mortgage requirements, tax assessments and real estate appraisals. This is due to a number of factors:

    • Costs for many raw materials that are needed to make repairs or to rebuild have increased in recent years, in some cases very significantly.
    • Specialized workers are often needed, in the event of a loss, to prevent further damage to your property.
    • Building codes may have changed since your home was built.

Here are some easy ways to keep your coverage current:

    • Review your coverage each year to be sure it reflects the cost to rebuild.
    • Inform your agent of any home improvements or remodeling projects you’ve completed in the past year.
    • Consider that even small home improvements can affect the cost to rebuild your house, but they may qualify your home for some additional discounts.


Your best choice for insurance

The first right decision in protecting all of your assets is finding an insurance agent who understands YOU and your family. We pride ourselves in taking the time to discuss your needs to ensure that you don’t find a gap in coverage when you need it most…something that can’t always be done in 15 minutes and is too important to rush. Make sure you and your family are fully protected and call us at 407-977-5700 or email any time at robert@wurzelagency.com.

Learn more about what is and isn’t covered:
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