It's difficult to calculate an accurate cost to replace a building or structure. There are various tools used by banks, appraisers and others, but they are all estimates—actual costs may exceed their figures.
For insurance to work properly, the value on the policy must be as close to actual as possible. So, how do you know if the number listed as the cost to replace your building on your insurance policy is accurate? The value should encompass several factors, including zoning and ordinance laws that may have changed in your area since the original construction of the building, the type of materials used in construction (especially if it is an older building), and the cost of demolition and debris removal. Such factors are hard to determine and will require professional assistance to adequately measure.
When was the last time your building or structure was inspected by a professional? A building inspector familiar with the area and local rules can give an accurate building valuation for insurance purposes. And your insurance agent or broker may have information on services, inspections or other useful tips to ensure your policy provides adequate coverage. Give us a call.