Evaluating Replacement Cost


When you buy home insurance, the amount of coverage you purchase should be the amount that it would cost to rebuild the home. Insurers have generally used home inspections to help determine home value. But since the pandemic hit, travel restrictions prevented on-site home visits.

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If you are like millions of other people, during the pandemic you have made improvements to your property. Whether you installed a pool, remodeled rooms or finished your basement, now is a good time to check in with your independent agent to ensure your homeowner coverages are still adequate.

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Buying a home is the biggest and most valuable purchase most people make. Many factors could draw you to a home: location, price, updated countertops or a large yard. The home inspection offers the buyer a deeper look into how the home has been maintained or whether it needs costly repairs.

The post Inspection gives home buyer a deeper look appeared first on The Cincinnati Insurance Companies blog.

Remodeling and renovation projects can add significantly to the value of your home. Whether you do it yourself or hire a contractor, remember to update your homeowner insurance as you increase your home’s value.

The post Remodeling, renovation can affect home’s value appeared first on The Cincinnati Insurance Companies blog.


The cost to rebuild your home can vary greatly from the market value. Replacement value reflects a contractor’s bid to replace the materials and special features of your home. Because each home is different, it's important to have experts evaluate the cost to rebuild to help your agent ensure that you have proper coverage if you experience a minimal loss to your home or need to totally rebuild it.

Consider these important considerations:

  • Year Built – The average cost to rebuild a home constructed before 1945 can be roughly double the replacement cost of modern homes.
  • Architectural Style – There is a wide variety of architectural styles, including Tudor, Colonial, Georgian and Modern. Each style has unique features that maintain its authenticity and factor significantly in rebuilding costs.
  • Location – Obstacles to site accessibility in remote, urban and mountainous areas can increase labor costs, driving up total construction costs.
  • Shape – The footprint of the home can also significantly affect the replacement cost; multiple angles or curved walls require additional engineering.
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