Do a little math and you�ll get yourself covered in no time. Calculate the Rebuilding Cost. Contact your local builders association for the local construction costs per square foot. Multiply that by the total square footage of your house. Figure the Factors.
In addition to the basic reconstruction cost, add in:
a) The type of exterior wall construction�frame, masonry (brick, block or stone), or veneer
b) Style of house (ranch, colonial, cape cod)
c) Number of baths, bedrooms, and other rooms
d) Type of roof
e) Special features like garages, fireplaces, palladium windows, wrap-around porches, two-level decks and other unique things.
When you've got that specific replacement cost, make sure the policy covers it� The RIGHT Definition of Replacement Cost You don�t want to get this answer wrong!
A Cost Is a Cost, Right? Wrong!
Replacement cost means different things in different policies.
Let�s Get Brutal...
Because there's nothing wrong with being brutally specific about this. Start with your own definition: Tell your insurance broker that you want to cover the TOTAL Replacement Cost, WITH adjustments for inflation of construction costs in your area. Your policy should specify that you're covered for the ACTUAL replacement value, NOT the cash value. Do NOT insure your home for current market value, either, because the market value will gyrate up and down over the years.
Is that specific enough? Let's move on to your stuff.
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