It pays to know how much it would cost to rebuild your home.
Don't assume that your insurance will replace your home, especially if you haven't reviewed your policy in a few years. Labor and material costs increase every year, so you need to stay current; however, overbuying results in paying extra on your premiums. Does this Spark an idea?
Instructions
1. Measure the square footage of your home. You can go around the outside to measure length and width and then multiply by the number of floors.
2. Note any architectural features that would be expensive to replace, such as ornate mantles, crown molding and expensive built-in cabinetry.
3. Run these numbers through a database and calculator provided by an insurance company. You can work with an agent or find a tool on an insurance company's web site.
4. As a comparison exercise, multiply the square footage by the average construction cost per square foot for your area. A local bank providing construction loans can give this to you.
5. Compare the average costs to your home's size to determine if they are similar and support each other. If they are vastly different, you should try another insurance company's tool or perhaps get an estimate from a local contractor.
Tags: your home, insurance company, square footage
