While shopping for insurance, you’ll need to know the replacement cost of your home and its contents to ensure your homeowners insurance properly covers you. If your home and its contents are damaged in a storm, do you know how much it’ll cost to build your life again? Here’s how to determine the replacement cost of your home.
Check Around the Neighborhood
The first thing to do is check how much home builders are charging per square foot in your area. Replacement cost doesn’t include the market value or the land that your home is built on. Once you determine the amount per square foot, multiply that by the square footage of your home. To get the most accurate cost per square footage your agent may come out to your home.
Add Up Built-Ins
Don’t forget built-in items in your home. This includes the flooring, cabinets, fixtures, and lighting. If you’ve kept all receipts and quotes, you’ll have the exact costs of these items. If you moved-in without knowing the cost, you can go to your local store and find same-quality items to determine a cost. Your flooring can be determined in a similar manner. Talk with local installers about how much they charge per square foot to install the same type of flooring that is in your home. Once you have the cost per square foot, multiply that by the square footage of your home.
Moving on to the exterior of your home! This includes the windows, doors, siding, and your roof. The siding cost will vary depending on the material. If you’re not sure what type of siding is on your home, have an expert come inspect it to give you an accurate answer. If your windows are storm-resistant, keep in mind the cost of these will be much more than basic-grade. Determining the replacement cost of your roof will be a little trickier. Have a licensed roofer climb up there and take a look. The cost will vary depending on the complexity and materials used in construction. A fortified home will affect your homeowners rates as well as the replacement cost. The safer and more wind-resistant the materials are, the higher the replacement cost will be.
In addition to your home inventory, keeping a record of any repairs, additions, and upgrades can all help you to determine an accurate replacement cost of your home. Insurance companies recommend taking videos and pictures of the items in your home and the exterior to prove quality and accuracy.
Need help determining your homes replacement cost? Independent insurance agents have access to several replacement cost estimators. These estimators are insurance industry standards. Talk to your Lighthouse agent today!