The Ups and Downs of California Home Insurance Replacement Costs

The Ups and Downs of California Home Insurance Replacement Costs

There are many factors that affect ever-changing home replacement costs. Due to fluctuating building costs, supply and demand and our everlasting economic standing your homeowners coverage needs to keep pace with the current replacement cost of your home.

As a consumer, it is very important to review your California Home Insurance policy at least once a year before your renewal period. If you don’t have enough coverage or replacement cost on your policy, in case of a catastrophic or total loss you will not be able to rebuilt your home, avoid financial loss and most importantly protect your family.

When reviewing your insurance policy, here are some points to remember:

In most cases, rebuilding costs are higher than new construction costs.
Removal of debris and demolition costs can easily add another four to seven percent to the total cost of rebuilding a home.
Special materials or custom features can be costly to replace. Custom built and older homes can include materials that are hard to replace. Many of these features – solid doors, custom ironwork, exposed beam ceilings and stained glass can be expensive to duplicate.
Construction costs rise after natural disasters. Widespread natural disasters cause the demand for building materials and contractors’ fees