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If your home were to be destroyed, would you know if you had enough insurance to
rebuild it?
The truth is, most people don't know
if they have enough home insurance because they haven't considered
all the cost needed to rebuild their home. Unlike your home's market value
or the value list on your property taxes, reconstruction costs differ considerably.
Market value takes into account the value of the land
but it doesn't provide an accurate reconstruction cost value.
In order to get a true picture of what your
estimated replacement costs could be, you'll need to assess the value of the
buildings alone
and not the land. In some cases,
the estimated replacement costs can sometimes exceed what you
actually paid for your home. Replacement or reconstruction costs
can include things like demolition cost, inflation for skilled labour,
building code upgrades, materials, and even the lost of building cost
efficiencies
that a home builder would get from building multiple homes
at once. To make sure you have enough coverage,
speak to your licensed insurance advisor they can answer all your questions
and help you calculate how much coverage you would need
to replace your home.