Information Homeowners Should Know

THINGS THAT CAN AFFECT THE COST OF REBUILDING YOUR HOME 
AFTER A LOSS

Costs to rebuild your home often differ from home market values, mortgage requirements, tax assessments and real estate appraisals. Rebuild costs will not be the same amount you paid for your home and market value is not used to determine the amount of coverage you need. Rebuild costs can be affected by:

• Depreciation
• Style of garage
• Square footage of the home
• Style of the homes structure
• Number of kitchens and bathrooms
• Exterior materials for framing and roofing
• Your policy’s building replacement cost coverage
• Additions or enhancements (finished basement)
• Whether you have an ACV policy or an RCV policy
• Number of kitchens/bathrooms and materials needed
• Any special features (fireplaces, porches, skylights)
• The scope of work (materials, labor and equipment with today's cost)
• Specialized workers are often needed to prevent further damages to the property
• Code upgrades - If your home is quite old then you may need to upgrade things to make sure they are up to code. Materials that are needed to restore your home may be more costly and harder to locate.

Insurance proceeds will only go so far. If you do not have an accurate amount of coverage then it will affect the cost of rebuilding your home. People get upset with restoration companies when the scope of work is explained to them and they see there is not enough money to restore the home to its pre loss conditions. That is not the restoration companies fault because it is up to the homeowner to make sure they have enough building replacement cost to rebuild their home.

If you've made any updates to your home or have added on any additions be sure to inform your insurance agency or it will affect the cost of rebuilding your home. These home improvements can increase the amount of coverage you need on your home:

• Hardwood flooring installation
• Updates to your kitchen/bath
• Additions to your home