In order to calculate replacement costs you have one of two options. These will be listed in order of best options.
1) Have your home appraised by a licensed professional. He/she will provide you the actual cost to rebuild your home from scratch. This is the best way to start if you have no clue what it would cost to rebuild your home.
2) Insurance companies provide agents a Replacement Cost Calculator (RPC). This is an easy tool for the agent, where he/she inputs all the necessary details about the house and location. The RPC then provides an estimated replacement cost. This is not as accurate as an appraiser, but it is free.
Unlike many people think, most appraisals include market value and not replacement cost.
For instance, a property in Detroit may cost $1 on the market, but the replacement cost of the house will be something like $200 per square foot.
Every insurance agent who offers HO policy should have access to a special professional tool. Using this tool you can submit your property info, such as quality grade (economy, standard, premium, designer, custom). Economy grade cabinets are, for instance, counted as $75 per cabinet, and custom may cost you as much as $500 per cabinet, or even more.
So using this tool you can estimate the replacement cost of your property.
.JPG){kind=avatar}
1) Have your home appraised by a licensed professional. He/she will provide you the actual cost to rebuild your home from scratch. This is the best way to start if you have no clue what it would cost to rebuild your home.
2) Insurance companies provide agents a Replacement Cost Calculator (RPC). This is an easy tool for the agent, where he/she inputs all the necessary details about the house and location. The RPC then provides an estimated replacement cost. This is not as accurate as an appraiser, but it is free.
I hope this helps.
For instance, a property in Detroit may cost $1 on the market, but the replacement cost of the house will be something like $200 per square foot.
Every insurance agent who offers HO policy should have access to a special professional tool. Using this tool you can submit your property info, such as quality grade (economy, standard, premium, designer, custom). Economy grade cabinets are, for instance, counted as $75 per cabinet, and custom may cost you as much as $500 per cabinet, or even more.
So using this tool you can estimate the replacement cost of your property.