Replacement Cost Calculator – Estimate Property Rebuild Cost
Estimate the cost to rebuild a property from scratch
Table of Contents
How to Use
- Enter the total square footage of your property
- Enter the base construction cost per square foot in your area
- Select your foundation type
- Choose the quality grade that matches your home
- Add costs for any special features (pool, deck, etc.)
- Adjust the local market multiplier if needed
- Review the total replacement cost estimate
What is Replacement Cost?
Replacement cost is the amount it would take to rebuild your home from the ground up with similar materials and quality, at current construction prices. This is different from market value, which reflects what buyers would pay for your property.
Insurance companies use replacement cost to determine adequate coverage amounts. Having proper replacement cost coverage ensures you can fully rebuild your home after a total loss.
Factors Affecting Replacement Cost
- Square footage and number of stories
- Foundation type (slab, basement, etc.)
- Construction quality and materials
- Architectural complexity and custom features
- Local labor and material costs
- Building code requirements
- Special features (pools, detached structures)
- Current construction market conditions
Replacement Cost vs Market Value
Market value includes land value and reflects supply and demand, while replacement cost only covers the structure itself. In expensive areas, market value may exceed replacement cost, while in declining markets, replacement cost might be higher.
Insurance Considerations
- Review your policy limits annually
- Consider extended replacement cost coverage
- Account for building code upgrades
- Include detached structures separately
- Update coverage after major renovations
- Consider inflation protection endorsements
Frequently Asked Questions
- How do I find the base cost per square foot in my area?
- Contact local builders for estimates, consult your insurance agent, or research construction cost databases. Costs typically range from $100-$400+ per square foot depending on location and quality.
- What's the difference between replacement cost and actual cash value?
- Replacement cost covers rebuilding at current prices, while actual cash value deducts depreciation. Replacement cost policies are more comprehensive but typically cost more in premiums.
- How often should I update my replacement cost estimate?
- Review annually and after major renovations. Construction costs can increase 3-5% per year, and significant home improvements add to replacement value.
- Does replacement cost include the land?
- No, replacement cost only covers the structures themselves. Land value is separate and typically doesn't need to be insured as it cannot be destroyed by covered perils.