Factors Used to Estimate House Insurance Replacement Cost

What factors are used to estimate house insurance replacement cost? In short, everything. It can seem very overwhelming when considering all factors used to determine the replacement cost of a home or residential property in Canada. For simplicity, we’ll start with the largest factors and work our way down.

Size of The Home

The size of the home is arguably the primary factor in determining replacement cost. The larger the home, the more materials and labour required to rebuild in the event of a loss.

Age of The Property

The age of your home determines its architectural era and helps infer details of its construction. For example, a home built in the early 1900s may feature crown mouldings, large baseboards, and solid hardwood doors; these elements are more costly to replace and thus increase your home’s replacement cost.

Home Finishes

The selected finishes in a home also impact replacement cost. Hardwood floors would be more expensive to replace than laminate. Marble or granite counter tops would cost more to replace than a standard Formica countertop. Specialty features such as pocket or barn doors, tray ceilings or wired-in surround-sound systems would be costly to replace, thus impacting your replacement cost.

Additional Factors

Additional factors that are considered when evaluating the replacement cost of a residential property, include:

  • The number of rooms
  • The type and number of light fixtures
  • The type and number of windows
  • Ceiling heights

These are all factored into replacement cost as well. Logically speaking, a home with 10-foot ceilings would require two additional feet of drywall, insulation and wiring to replace over the standard 8-foot ceiling height. A home that features 16 pot-lights in the living room would require additional costs in materials and labour to replace than it would to replace a single light fixture. The number of rooms in a home requires additional framing and drywall which would impact the replacement cost as well.

Estimate Your Home Rebuild Cost with Douglas Residential Cost Guide

In short, every aspect of your home from shingles to foundation and everything in between is all considered when calculating replacement cost. It can be an overwhelming process. The Douglas Residential Cost Guide makes estimating the replacement cost of your residence easy. Our easy-to-use guide was developed by leading industry professionals utilizing geographic and market trends and pricing to ensure your replacement cost is accurately calculated. Let us help you calculate your replacement cost today.