| There are three ways to insure the structure of | | | | the local building costs per square foot by the total |
| your home... | | | | square footage of the house. If your not sure about |
| 1. Actual Cash Value: Home Insurance under this | | | | the local building costs you can consult the local |
| policy would receive a dollar amount equal to the | | | | builders association or a real estate appraiser. |
| replacement value of the damaged property. Some | | | | Factors that will determine the cost to rebuild your |
| policy makers deduct a dollar amount for depreciation. | | | | home: |
| Actual cash value is almost always less then the | | | | 1. The square footage of the structure |
| replacement value of a home. | | | | 2. The Local construction costs |
| 2. Guaranteed Replacement Cost: This would be | | | | 3. The style of the house (ranch, basement entry) |
| home Insurance that pays the FULL cost of replacing | | | | 4. The number of bathrooms and bed/guest/living |
| damaged property. There will be no deduction for | | | | rooms |
| depreciation and no dollar limit. Some companies do | | | | 5. The materials used in the roof |
| limit this coverage to approximately 120 percent of | | | | 6. Attached garages, fireplaces, exterior trim and |
| the cost to rebuilding the home. | | | | other special features. |
| 3. Replacement Cost: This policy home Insurance plan | | | | Consider checking the value of your insurance policy |
| pays you the cost of replacing the damaged | | | | against rising building costs each year. You should |
| property. There is no deduction for depreciation and | | | | think about adding a "Inflation Guard Clause" to your |
| you are limited to a maximum dollar amount. | | | | policy. That way your policy will adapt to rising |
| You can always calculate a quick estimate on the | | | | buildings costs and your policy will reflect current |
| dollar amount to rebuild your home. Simply multiply | | | | construction costs. |