It starts with a few questions : such as, square footage of the house, type of siding, how many stories, attached or detached garage, and so on.
We then take that information and input it into our MSB software which then comes back with how much it would cost to rebuild the house from the ground up, including debris removal, as if it was a total loss.
Sadly, the cost of building materials increase each year so that’s why you might see your Replacement Cost (aka RC) higher than what you might expect.
A popular misconception is that the market value of your home plays a part in the homes Replacement Cost. The market value only says how much the house is WORTH, where as Replacement Cost states how much it costs to REBUILD.
If you look at your policy you will see your Replacement Cost Coverage Amount under Coverage A.