Custom features can add to rebuilding costs.
“I could never sell my house for that!” How many times have we heard this said or even said it ourselves? It’s easy to experience sticker shock when we see the value our insurance company wants to place on our home.
Calculating replacement cost ̶ or more accurately, reconstruction cost ̶ is often a complicated process, and results can deviate widely from market price. It’s not unusual for rebuilding costs to be significantly higher than the cost of new construction.
Reconstruction cost is the cost to hire a contractor to replace the home as it is, in today’s marketplace using materials and design of similar quality. While the cost of materials plays a significant role in determining the valuation, many other factors need to be considered but often are overlooked. Read More
Make sure your homeowner insurance policy covers all the bases.
Read our checklist of items that could affect your homeowner insurance coverage to make sure you are covering all the bases. If you agree with any of the following statements, it may be time to look at the terms of your homeowner insurance policy and discuss options with your agent.
- We would like an estimate of our home’s reconstruction cost at today’s prices.
- In the event of a loss to our contents/personal property, we want items to be replaced with no deduction for depreciation.
Photograph new purchases to update your inventory.
Second of two parts
So you know why you need a home inventory, but where to start? There are several tools available to help you document your home inventory.
- The National Association of Insurance Commissioners has a free app called MyHOME Scr.APP.book to electronically store home inventory room by room, including photos, descriptions and purchase information. Apple® or Android® users can visit the iTunes® Store or Android® Market and search for NAIC.
- Those without a tablet or smartphone will find a downloadable home inventory list with appliances, electronics, furniture and other items found in many homes.