Each homeowner carrier has their own software to determine the estimated cost to rebuild the home which is then used as the limit for dwelling coverage on the policy. This tool requires specific information on the dwelling itself which includes original year of construction, type of construction, square footage of the living area, customization of any areas (such as kitchen, bathrooms, etc), whether basement is finished, attached structures (such as porch, deck, garage, etc), type of flooring and wall covering, type of heat and if air conditioned, etc.
We normally try to obtain as much information from the homeowner as possible, but sometimes we need to verify information from the town assessor sites.
If homeowners add onto their existing homes or update/customize any living area(s), they should notify their agents to ensure that proper coverage for the home is always maintained. It is actually a requirement that a new replacement cost estimator is done in these instances when the policy is providing replacement cost coverage on the dwelling.
Learn more about some common home insurance policies, or check out our main homeowners page! Feel free to contact us with any questions!