How To Determine Reconstruction Cost

July 18, 2016

A reconstruction cost estimate is used to determine the structure replacement coverage of a home policy.  Which means, if the reconstruction cost estimate is not accurate and too low, a homeowner may not be able to cover any possible losses incurred, reports.

In order to get the most accurate reconstruction cost possible, things such as the home’s square footage, year it was built, architectural style, number of stories, foundation and roof, kitchen and bathrooms, and garages need to be taken into consideration.

While it may seem complicated, accurately estimating reconstruction costs is actually not a difficult task as long as the agent, homeowner, or underwriter has a sophisticated estimation tool and complete knowledge of the most important factors of the home to consider in determining the reconstruction cost.

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