How Much Would It Cost to Rebuild Your Home in Today’s Dollars?

Ensure the investments you made in your home are protected

Your home is a place full of memories. But what if that home were damaged beyond repair, such as in a fire? Many people assume their homeowner’s insurance would cover the full cost to rebuild it.

Unfortunately, that’s not always the case. In fact, 64 percent of homes are undervalued — and potentially underinsured — by 19 percent, according to Marshall & Swift/Boeckh, a leading provider of building cost data to real estate professionals.

Assume, for example, that you insured your home seven years ago for $200,000. If you had a replacement cost policy, it would pay out up to $200,000.

The problem is that it would likely cost more than that to rebuild the same house in today’s dollars. According to the National Association of Home Builders, the cost of construction rose from $79.67 per square foot in 2011 to $85.65 per square foot in 2017.

“That’s one of the hardest situations a homeowner can ever face — to find out too late that the amount they’ll get from their insurance company is not enough to rebuild their house,” said Kali Sarvey, agent and Certified Insurance Service Representative (CISR) at Sarvey Insurance.

“That’s why we want to help people understand the simple step they can take now to be sure they’re protected later.”

Sarvey says that simple step is to ask your insurance agent if Guaranteed Replacement Cost Coverage is included with your policy. She says if it isn’t, add it; not all companies offer it, but some, like Erie Insurance, do.

“Uncertainty is part of life, but it doesn’t have to rule your roost. With Guaranteed Replacement Cost, you can rest easy knowing that you can rebuild your home and when the work is finished, you’ll be reimbursed regardless of what it costs in today’s dollars.

“You don’t have to worry about the insurance company deducting wear and tear or depreciation from the amount they’ll pay. You’re covered.”

Sarvey said Guaranteed Replacement Cost is one of the most popular coverages among homeowners because it strikes the right balance between value and budget.

“We get to know our customers so we can help them choose the coverages they need – not what they don’t,” said Sarvey.

“Guaranteed Replacement Cost is a coverage that a lot of our customers really appreciate. We also stay in touch with them, so we are aware of any home improvements over $5,000 that our customers make within 90 days of the project’s start — a requirement for Guaranteed Replacement Cost.”

Anyone who has questions about homeowner’s insurance or Guaranteed Replacement Cost coverage is invited to contact Sarvey Insurance by phone at 814-849-5348, by e-mail at or in person. The Sarvey Insurance has offices in DuBois, Brookville and Punxsutawney.

“Many of our customers have busy family lives and don’t have a lot of extra time in their day to think about insurance, and we get that. That’s why we’re here to help.” said Sarvey.

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