What price per sqft to use for homeowners insurance replacement cost (Pittsford: how much, home builders)

[laier21usa]

We recently purchased a home in Pittsford for $270k and are in the process of closing. I'm currently shopping for homeowners insurance and am trying to get an idea of how much I should insure the home's replacement cost. From my experience shopping around with new home builders in the area, the price to build averages about $120-$140/sqft. However, that does not take into consideration the costs for demolition and debris removal should something catastrophic happen to the home like a fire. I took a wild guess and figured I should add maybe another $20/sqft to the building cost. Does anyone have any recommendations on what figure I should use?

[ss20ts]

Usually, the insurance agent will help you with this. There are so many factors that go into figuring all that out.

[laier21usa]

The problem is when I get quotes from each insurer they all use different numbers. So far the ranges I have received for dwelling replacement costs were from $340k to $423k. I'd feel much better if I could derive the number on my own and match the amount of coverage I need. My next step is to contact some demolitions contractors for some idea.

[ss20ts]

Originally Posted by laier21usa

The problem is when I get quotes from each insurer they all use different numbers. So far the ranges I have received for dwelling replacement costs were from $340k to $423k. I'd feel much better if I could derive the number on my own and match the amount of coverage I need. My next step is to contact some demolitions contractors for some idea.

Each insurance company may be giving you different amounts for numerous reasons. Some don't value the land and foundation the same. You're probably also getting coverage included for the contents. Different insurers also value things differently. One may be low and one may be high. You're better off having too much coverage than not enough or just enough.

[laier21usa]

Thanks for the input ss20ts!

Most of the insurance quotes I received simply calculated the personal property coverage as 75% of the dwelling cost. So in my case, I ended up going with Liberty Mutual with a dwelling replacement cost of $423k and $317k for personal property. I came up with the number based on $140/sqft to re-build and $15/sqft for demolition and debris removal. I used the high end of rebuilding and demolition quotes to base my coverage.

[ss20ts]

Originally Posted by laier21usa

Thanks for the input ss20ts!

Most of the insurance quotes I received simply calculated the personal property coverage as 75% of the dwelling cost. So in my case, I ended up going with Liberty Mutual with a dwelling replacement cost of $423k and $317k for personal property. I came up with the number based on $140/sqft to re-build and $15/sqft for demolition and debris removal. I used the high end of rebuilding and demolition quotes to base my coverage.

Hopefully, you'll never need it! My parents' house was underinsured and a tree fell on part of their house. They were ok and the house was habitable, but they had to pay soooooo much out of pocket and they weren't prepared to have to fork over a ton of dough. I learned a lesson from that. They didn't learn much. They have rebuilt the side of the house the was severely damaged and STILL have NOT increased their insurance coverage because it would cost them more money. Sorry, but an extra hundred or two a year can save tens of thousands out of pocket later.