Cost per square foot to re-build?

by MrDetail » Sat Jan 22, 2011 11:03 pm

Hello all;
This is my first post here and I hope to learn much from many of you.
My homeowner's policy will be up for renewal in a few months and I want to be sure that I am not over insuring our home when I renew.
Can anyone tell me how to determine what the cost per square foot would be for my geographic area? We live in suburban Philadelphia, PA and our zip is 19083.

I'm just not sure what to insure our home for in the first line of Section I, which is "DWELLING". With the value of most homes in the country dropping also a bit it is hard to determine this figure. Any help would be most appreciated.

Total Comments: 4

Posted: Sun Jan 30, 2011 05:38 pm Post Subject:

welcome an thanks for posting. Mr detail, this one of those things a local agent can best help you with during an insurance review. it's a good idea to sit down and review your all your needs and look at recommendations that will work best for you.

when calculating replacement cost, don't necessarily go by market values, but need to figure what it would cost to rebuild. building material and labor pricing in your area is more helpful in determining your needs than market value. Its not uncommon for a home to insured for well over market value, especially in areas where building prices are high. most agents have software that will help with this calculation, but you can ask around to builders in your area to guesstimate a per sq amount to rebuild to guide you as well.

also, take a look at your liability, personal property (contents), and and any other coverage you think may be important to you. make sure you are fully protected as you need to be.

Posted: Wed Feb 02, 2011 10:49 am Post Subject:

mbyork is correct . . . a local agent is your best resource for determining coverage. Failure to properly insure your property will result in a diminished payment for any loss.

All insurance companies use sophisticated software to help determine replacement costs, and their numbers tend toward the conservative (more coverage, not less). If you live in a masonry-constructed row home, your replacement cost per square foot could actually be higher than a frame-stucco dwelling, due to structural concerns relative to the brick construction (not to mention the potential liability for structural damage to adjacent dwellings through common walls.

I'm here in California where construction costs are somewhat different than on the east coast. But you could probably figure anywhere from $150-$200/sq.ft. as a starting point.

Posted: Thu Feb 03, 2011 09:46 am Post Subject:

Varying construction costs are certainly a good cause for consulting a local agent. If you don't insure properly, you'll surely need to bear more out-of-pocket in the event a damage occurs.

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