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The cost to rebuild your home is based on a number of factors and can often be higher than what you could sell your house for. The price of raw building materials may have increased over the past few years, while the value of real estate has generally decreased.

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

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

Why rebuild costs can differ

  • 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:
  • Cost for many raw materials that are needed to make repairs or 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

Make sure you have the right coverage

Updates, additions and improvements to your home may increase the amount of coverage you need. Most common changes like installing hardwood floors, updating a kitchen or bath or adding a deck can affect the cost to rebuild.

Here are some easy ways to keep your coverage current:

  • Review your coverage each year to be sure it reflects the cost to rebuild
  • Let us know if you’ve made any home improvements or if you’ve completed any remodeling projects you’ve completed in the past year
  • Consider that even small home improvements can affect the cost to rebuild your house

Post Author: Steve Sarantos

Steve Sarantos spent his first 20 years after education, working in the auto industry, retail, and importing from the orient. Most of the positions were sales, or negotiating with vendors, which gave him a wealth of experience working directly with people and what it takes to make things work for both parties.
When he decided to go into business for himself, insurance seemed like the perfect venue. Help people with something most knew very little about, get the right product for the right price. Everyone has to have it in or form or another, so all you have to do to be successful is be honest, keep your promises, and offer people what they want. Someone to talk to about insurance that will give them choices and straight talk.
After starting Reliable Insurance Network from scratch in 1996, it is now a thriving family business with clients in MN, WI, and AZ. Reliable Insurance Network continues to refine it's processes, use technology to stay flexible, and let clients work with them in whatever way is comfortable for them, and provide top companies and rates along with superior service so everyone is happy.