If you have already bought your homeowner’s insurance but have made changes to your property leading to an increase in its overall value, you may have to update your policy to reflect that change. Here are some factors that can have an impact on the replacement cost of your property.
New Building Codes
When considering the replacement cost of your home, it is natural to stick to what you might have spent to build your home in the first place. Many homeowners make this mistake. In the event of a natural disaster damaging your home, you should consider the cost of rebuilding to meet up-to-date building codes. This could mean anything from adding insulation to green energy systems depending on where you are. The overall replacement costs of your home could rise considerably. A good idea is to ask your insurance provider what they will or will not cover -you can make finding a suitable insurance cover simple with Money Expert too. Some companies are willing to provide you with building code cover, so you may want to take it if you believe that things are going to change in the near future.
Things are changing rapidly for homeowners and there is a trend towards remodeling kitchens with luxury materials and appliances. You’ll need to include the costs of a modern kitchen with such things as double tub steel sinks, granite countertops, and resilient flooring. Therefore, it makes sense to include things when estimating the replacement cost of your home.
New Rooms and Structures
If you’ve already taken a home insurance policy but now your family has grown, it is important to take steps to update your policy accordingly. You’d need additional rooms and might have to invest in new structures, such as a screened-in porch, a workshop or even a garage. Not updating your homeowner’s insurance would mean having to pay to replace them or do without them if the worst happens.
Increasing Construction Costs
Just like changing building codes, there are always changes in the costs of construction and building materials. Understand that timber, bricks, and stone are going to cost you much more if a hurricane or another natural disaster has affected your town. It’s supply and demand. Similarly, workers’ wages will be higher to cover overtime. Consider all these factors when determining the replacement cost of your home.
As mentioned already, building codes change over time, but building styles change too. It means that carpenters who helped you make elegant ceiling molds and arched windows in the past may no longer be able to help. Instead, will need to find and pay for specialist help to restore the features and fittings. Factor this in from the start by adding a realistic estimate to your predicted rebuild cost.
No one is ever really ready for the trauma of losing a much-loved home. It’s where your best memories are made and you somewhere you thought of as a place safety in return for the care you gave it. It’s natural to want to rebuild. It may never happen but in case it does, if you already have realistic estimates for replacing you home as part of your policy, you can achieve some peace of mind knowing you’ll be able to rebuild properly.