HOME REPLACEMENT COST ESTIMATOR
​(RCE)

DO YOU HAVE ENOUGH COVERAGE ON YOUR HOME?

Use the tool in blue below to figure out a very rough, ballpark figure of how much your home should be insured for. 

Use the next tool, in white to enter your info in a form that will send us enough info to give you a much more exact dollar figure on how much to rebuild your home for.

For your quick reference, as a ballpark number

Home Insurance Replacement Cost Estimator Tool

Home Insurance Replacement Cost Estimator Tool

Zip Code

Square Footage (Above Ground)

Construction Type Frame Masonry Masonry Veneer Pole and Beam Other

Number of Stories 1 Story 1.5 Stories 2 Stories 2.5 Stories 3 Stories

Foundation Type Slab Crawl Space Basement

Foundation Material Concrete Block Brick

Percent of Basement Finished

Grade of Interior Finishes Basic Standard High-End

Percent of Each Type of Flooring Used

Hardwood (%)

Engineered Hardwood (%)

Luxury Vinyl Plank (%)

Vinyl Sheet (%)

Carpet (%)

Tile (%)

Fireplace Yes No

Air Conditioning Yes No

Attached Garage No Garage 1 Car Garage 2 Car Garage 3 Car Garage

Grade of Exterior Finishes Basic Standard High-End

Type of Roofing 3 Tab Shingle Architectural Shingle Metal Tile

Percent of Each Siding Material Used

Vinyl (%)

Wood (%)

Wood Shake (%)

Brick (%)

Stucco (%)

Fiber Cement (%)

Stone (%)

Square Footage of Decks

Square Footage of Porches

Calculate

HOME REPLACEMENT COST CALCULATOR:
​YOUR ESTIMATOR TOOL

UNDERSTANDING HOME RECONSTRUCTION COSTS FOR INSURANCE

Introduction
Calculating the reconstruction cost of a home is a critical aspect of homeowners insurance. It ensures that in the event of a disaster, your home can be rebuilt to its original state. Accurate reconstruction cost estimates protect homeowners from financial burdens that might arise if their insurance coverage is inadequate.

How Reconstruction Costs Are Calculated
Reconstruction cost estimates (RCE) are calculated based on various factors, including:

• Square Footage: The total living area of the home.
• Number of Stories: The number of floors in the home.
• Foundation Type and Material: Options include slab, crawl space, or basement with materials like concrete, block, or brick.
• Grade of Finishes: Both interior and exterior finishes are considered, with categories ranging from basic to high-end.
• Roofing and Siding Materials: Types of roofing (e.g., 3 Tab Shingle, Architectural Shingle) and siding materials (e.g., vinyl, wood, brick) impact the cost.
• Additional Features: Features such as fireplaces, air conditioning, attached garages, decks, and porches also factor into the estimate.

The cost of your home significantly influences the calculation of these factors.
To calculate these costs accurately, you can use our Home Replacement Cost Estimator. This tool allows you to input detailed information about your home to generate an accurate reconstruction cost estimate.

Why Accurate Reconstruction Costs Are Important
Having an accurate reconstruction cost is vital for several reasons:

1. Adequate Coverage: Ensures your insurance policy provides sufficient funds to rebuild your home in case of total loss.
2. Avoiding Out-of-Pocket Expenses: Prevents you from facing significant out-of-pocket expenses if your coverage limits are too low.
3. Peace of Mind: Provides reassurance that your home and investment are fully protected.
4. Dwelling Coverage: Ensures that your dwelling coverage aligns with the replacement cost of your home, providing adequate financial protection.
5. Dwelling Coverage Limit: Helps determine the appropriate dwelling coverage limit to prevent underinsurance and manage policy costs effectively.

Assessing Your Current Insurance Limit
To determine if your current insurance limit is adequate, compare it with the reconstruction cost estimate generated by our Home Replacement Cost Estimator. If there is a discrepancy, consider updating your policy to match the accurate reconstruction cost.
Additionally, you can submit the detailed form on our website to receive a professional evaluation of your insurance needs.

Endorsements Dependent on Correct Dwelling Limits
Several insurance endorsements rely on having accurate dwelling limits:

• Extended Replacement Cost: Provides additional coverage if reconstruction costs exceed the dwelling limit, typically by a percentage (e.g., 125% of the dwelling limit).
• Guaranteed Replacement Cost: Provides an unlimited dwelling limit, so long as at your renewal, your dwelling limit was accurate. This includes guaranteed replacement cost coverage and a guaranteed replacement cost policy.
• Building Code Upgrade: Covers the extra costs of rebuilding your home to current building codes, which might be more stringent than when your home was originally built.
• Inflation Guard: Adjusts your dwelling limit annually to keep pace with inflation in construction costs.

Additional Considerations

• Annual Reviews: Regularly review and update your insurance policy to account for changes in construction costs and home improvements.
• Professional Appraisal: For unique or high-value homes, consider a professional appraisal to ensure accurate coverage.
• Replacement Cost vs. Actual Cash Value: Understand the difference between replacement cost (rebuilding with similar materials) and actual cash value (depreciated value).
• Home's Replacement Cost: Understanding your home's replacement cost is crucial for ensuring your insurance coverage is adequate.
• Insurance Company: The insurance company plays a significant role in determining coverage limits, and meeting the 80% rule is essential to avoid underinsurance.
• Market Value vs. Replacement Cost: Distinguish between market value and replacement cost in the context of homeowners insurance to ensure proper coverage.

Conclusion
Accurate reconstruction cost estimates are essential for proper home insurance coverage. Use our Home Replacement Cost Estimator to evaluate your current insurance limits and submit the form on our website for a professional assessment. Ensuring your policy reflects accurate reconstruction costs will safeguard your home and financial well-being in the event of a disaster.

By entering info about your home in the form below, we will be able to plug that same info into our tools to calculate an approximate, though much more precise amount than above of how much you should insure your home for.
​
Replacement cost coverage is crucial for ensuring you have adequate funds for rebuilding. Replacement cost policies protect against financial risk by covering the full cost of rebuilding. Replacement cost value can be calculated using professional appraisals and online tools. Understanding replacement value impacts your insurance coverage and ensures you are fully protected.

By entering info about your home in the form below, we will be able to plug that same info into our tools to calculate an approximate, though much more precise amount than above of how much you should insure your home for. 

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How Much to Insure Your Home For

Keep in mind, the number we use is the cost to build the home as well as a 15% allowance for tear down and debris removal after a loss occurs. ​

Real Estate Value vs. Reconstruction Value

Keep in mind, your home may be insured for a number completely different than what you could sell your home for. This is because the insurance company is only interested in how much in total it will cost to rebuild the home, not the market value of it. 

Similarly, a home on Lake Michigan might have a drastically higher selling price than that same home on a small lot in a very rural area, but the cost to rebuild is typically similar.