When insurers calculate the replacement cost of a dwelling for homeowners insurance they need to know certain characteristics about each type of home. Insurers calculate the replacement cost of a home using various estimators to determine the cost. Calculating a home's replacement cost was once done by hand but is now done by using computer programs.
Instructions
1. Determine what type of building materials were used in the home. Typically a home is either built of wood or masonry.
2. Determine a home's total square footage. The square footage is an important factor because it indicates the total size or area of the home. This does not include the garage or a breezeway.
3. Determine the number of baths there are in a home. A bath comes is various sizes or types. Typically a home has a combination of a half bath and a full bath.
4. Determine what type of basement there is in a home if there is one. A home can either have a slab, a crawlspace as well as a cellar and basement.
5. Determine if a home has a carport or a garage. If a home has a garage it is important to know if it is connected by a breezeway.
6. Determine if there is a deck attached to a home. If a deck is attached the square footage or area needs to be known.
7. Obtain a replacement cost estimator either online or from an insurer. Many web sites offer ways for people to calculate a home's replacement cost.
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