Florida Loss Public Adjusters, Inc. - State License# E109802 |

(954) 430-7333

When you are looking into buying a homeowners insurance policy, you will need to decide how much home insurance coverage limits you would want. Your home value should be enough to rebuild your house.

How much should this be? It will depend on your property’s insurance quotes, which can be done through a professional public adjuster, insurance agent, a replacement cost calculator, or your computation.

Knowing how much your home replacement cost is important. In the unfortunate and unexpected event of your house needing a rebuild or replacement, having the right homeowner’s insurance quotes from an insurer can greatly help you.

How to Estimate Your Home’s Replacement Cost?


What is Replacement Cost Value?

Also called dwelling coverage limit, a replacement cost value (RCV) is a cost policy that is the payment equivalent to the value of your damaged or destroyed home and personal belongings. A cost estimator considers as near as possible to the exact or similar replacement value to today’s market. Additionally, it is different from the market value of your home, which is the cost of your home including the land value. 

Dwelling limit or RCV is also often confused with actual cash value (ACV). While RCV compensates you with a similar value of your personal property coverage, ACV provides you with a depreciated value. With both claims payments reviewed, you can see how RCV is better because it puts you back into a financial position before losing your items. You also have the option to get an upgrade with an extended replacement cost or a guaranteed replacement cost. 


Factors That Affect the Replacement Cost Estimate of Your Home

The homeowner’s insurance company will base your value on the details and declarations of your homeowner application or home insurance policy. Here are some of the major factors that home insurance companies base your homeowner’s insurance policies estimate on.

Your Home’s Square Footage

A home’s size is the main factor that can affect your cost to rebuild your home. Multiply the square footage of your house by the local rebuild cost per square foot to get a rough estimate.

The bigger your house size is, the more expensive it will be to replace it. To get an accurate estimate and information of the building cost, you should contact your local professional.

The Age of Your Home

There are architectural elements that can affect your home’s replacement cost coverage. Older homes may have features and materials you may want to keep. These can run up the construction costs with repair or replacement. Additionally, current building codes will apply to older homes as well. 

Quality of Finishes

The materials of your home can affect the value of your place. Granite countertops, hardwood floors, and kitchen islands rebuilding cost more to replace than Formica countertops and laminate flooring.


Get an Accurate Estimate

Multiple factors can affect your dwelling limits. Make sure to consider these factors and calculate the replacement cost in your homeowner’s policy with the help of a trusted Florida public adjuster.

(954) 430-7333