How much will it cost to rebuild your home should it be damaged or destroyed? I doubt anyone can give you the correct answer because the cost to rebuild your home will vary considerably depending on how it is damaged.
If your home is the only one damaged in your area, for instance a fire in the home, the cost to rebuild will be one number. And if a number of homes in your area are damaged or destroyed, for instance a storm or wild fire, the cost to rebuild could be significantly more as materials, labor and contractors may be in short supply and cost much more.
So how does one address that possibility? Some, not all, insurance companies offer a Guaranteed Dwelling Replacement Cost feature that can be added to your policy. Under this feature, you are required to purchase an amount of insurance consistent with the current cost to rebuild your home at normal prices. If your home needs to be rebuilt following a loss, the amount of insurance will automatically increase to whatever you need to rebuild the same home you had before the loss.
That is the only way I know of to always buy the right amount of insurance, get one that adjusts to changing loss conditions. Otherwise, it’s just a guessing game and if you are wrong, you lose, not the insurance company.
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How much will it cost to rebuild your home should it be damaged or destroyed? I doubt anyone can give you the correct answer because the cost to rebuild your home will vary considerably depending on how it is damaged.
If your home is the only one damaged in your area, for instance a fire in the home, the cost to rebuild will be one number. And if a number of homes in your area are damaged or destroyed, for instance a storm or wild fire, the cost to rebuild could be significantly more as materials, labor and contractors may be in short supply and cost much more.
So how does one address that possibility? Some, not all, insurance companies offer a Guaranteed Dwelling Replacement Cost feature that can be added to your policy. Under this feature, you are required to purchase an amount of insurance consistent with the current cost to rebuild your home at normal prices. If your home needs to be rebuilt following a loss, the amount of insurance will automatically increase to whatever you need to rebuild the same home you had before the loss.
That is the only way I know of to always buy the right amount of insurance, get one that adjusts to changing loss conditions. Otherwise, it’s just a guessing game and if you are wrong, you lose, not the insurance company.