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Old 12-24-2009, 10:34 AM
 
Location: Las Vegas
523 posts, read 671,659 times
Reputation: 278
Default Home Insurance amount/replacement cost in vegas

Our home insurance company determined , after having an inspection done, that our current coverage was not enough to cover complete replacement should one be necessary. Besides adding on for the upgrades and better than average building materials that might be used, whats the average construction cost per sq ft to rebuild a home in Las Vegas?
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Old 12-24-2009, 10:56 AM
 
1,147 posts, read 1,727,933 times
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I think you will discover, none of that matters. Case in point, should your home be destroyed to the point it needs complete replacement, remember the lot is still standing so theoretically, the value of that should be backed out of the value of the home. But, insurance companies never do that. I just had an instance last year where our insurance company suddenly determined our house was worth $50,000 more than we had paid for it even in this depreciating market ??? and they claimed total replacement cost would be $100,000 more than it would cost in reality, considering my lot is intact. I called company after company and they all work the same. The only way you can get around it and pay premiums on what your house would really cost to replace is to find a company that will allow you to insure your house replacement for 80% say of their estimated value. You and I know, taking your existing lot into consideration, 80% would more than cover you but if 80% doesn't cover your mortgage amount, the bank will not let you get by with it and if the insurance underwriter does not feel you are paying what they have determined they should be getting from you, the company will not write the policy. More and more of this is going on now since houses are in a depreciating cycle. Another fact is, if the insurance carriers were honest about this, most of us could get our house replaced at less than we originally paid for it because of the builders and subs now taking less profit in order to have work.
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Old 12-24-2009, 12:19 PM
 
Location: Las Vegas
523 posts, read 671,659 times
Reputation: 278
Their explanation is due to rising costs (not market value) , plus inflation coverage, etc, etc... turns out our insurance replacement cost according to them is more than 200k over our current market value. Now, most of the homes in our subdivision were built in 2004/2005 and the builder sold them for the market price back then which just happens to be about what the insurance company is saying it would cost to rebuild it.
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Old 01-15-2010, 02:32 PM
 
1 posts, read 1,667 times
Reputation: 11
State Farm use $100 per Sq ft for replacement value. So, yes that brings it up to about 2005 value not todays value. How would one determine the real cost per sq ft?
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