Home Rebuild Cost Estimator

We have partnered with CoreLogic to help you estimate for your client the costs to rebuild their home in the event of a loss. Read more below about how to use that tool!

Calculating the replacement cost of a home is crucial for ensuring homeowners have the right insurance coverage. Unlike market value or assessed value, insurers base coverage limits and premiums on the home's reconstruction cost—the estimated cost to rebuild the home to its original condition in case of loss. Inaccurate estimates can lead to underinsurance, leaving homeowners financially vulnerable.

How to Use the Home Replacement Cost Tool within Holistiplan

Follow these steps to generate an accurate replacement cost estimate using the tool within Holistiplan:

•  Access the Tool:

• Go to the Home Product section within Holistiplan.
• Click on the Home Icon to begin.

Start Rebuild Estimator

• • Go to the Rebuild Cost section within Home Insurance Details
  • Click on the Fetch Corelogic Valuation to begin.

• Enter the Client’s Address:

• Address Found: If the tool locates the address, it will pull relevant data for you to review. This includes details such as the home's construction type, style, and square footage. ( as seen in image below)
• Address Not Found: If the home is new or the address isn't in the database, you may need to manually input details. Click on Customize to proceed with adding information.

 Review the Pre-Populated Information:

• Home Style: A breakdown of the home's style is automatically populated. You can verify or adjust this based on client preferences.
  • More Information- https://rct7.msbexpress.net/RCT46Help/1/Content/home_styles.htm 
    • For example, Condo Owners should select the “Condo” style for accurate “walls-in” calculations.
• Construction Type: The tool will also populate this based on available data, but you can adjust as necessary.
  • If the home was built before 1940, use Standard/Vintage construction type if it’s been updated, or Vintage if updates are limited.
  • More Information- https://rct7.msbexpress.net/RCT46Help/1/Content/Construction_Type.htm  

• Number of Families
• Additional information https://rct7.msbexpress.net/RCT46Help/1/Content/Number_of_Families.htm  

Select Refine Features and Materials 

Review and update based on clients needs:

If the address wasn’t found or you want to refine the estimate, update these specific details based on the client’s home:

• Kitchens: Kitchen Styles Guide
• Bathrooms: Bathroom Styles Guide
• Framing: Framing Types Guide
• Foundation Type: Foundation Types Guide
• Garage and Carports: Garage Types Guide

Recalculate the Estimate:

• After reviewing and updating the necessary details, click Recalculate Estimate to generate an updated estimate based on the refined inputs.

Finalize the Estimate:

• Once satisfied with the estimate, click Close and Accept Estimate to proceed.

• Then, click Get Report, which will download the estimate to your computer.

• Finally, click Save at the bottom of the screen to ensure the updated information is stored and displayed in the system.

Review and Update Insights:

• The estimate and any updated information will automatically update the insights on the screen, reflecting the new replacement cost and coverage.

7 Key Factors That Impact Home Insurance Reconstruction Costs:

The replacement cost estimate depends on multiple factors related to the home's design, construction, and location. Here's a breakdown of the primary elements that influence reconstruction costs:

1. Square Footage:
   • Larger homes require more materials and labor to rebuild. For instance, a 4,000-square-foot home will cost significantly more to rebuild than a 1,200-square-foot home of similar quality.
2. Year Built:
   • Older homes may use materials or construction methods that are more expensive to replicate. For example, homes built before the 1940s might feature lath and plaster walls, which are costlier to replace than modern drywall.
3. Architectural Style:
   • Homes with complex or intricate designs (e.g., Victorian, Queen Anne) often involve more detailed craftsmanship, which raises the cost of reconstruction.
4. Number of Stories:
   • Multi-story homes require more complex foundations and labor, which affects the cost. For example, a two-story home often has a smaller foundation than a single-story home of the same size.
5. Foundation and Roof:
   • The type of foundation (e.g., slab, basement) and roof (e.g., gabled, hip) significantly affect reconstruction costs. Basements and complex roof designs (e.g., tile roofs) are more expensive to rebuild.
6. Kitchen and Bathrooms:
   • High-end materials and custom features in kitchens and bathrooms (e.g., granite countertops, custom cabinets) can dramatically raise reconstruction costs.
7. Garages:
   • The size and type of garage—whether attached, detached, or built into the basement—can impact the total cost. A larger, attached garage with custom features increases the overall estimate.

Additional Considerations:

• Detached Structures (Coverage B): Features like swimming pools, detached garages, and outbuildings fall under Coverage B and require separate calculations for replacement costs.
• Systems and Finishes: Whole-house systems like HVAC, plumbing, and electrical, as well as interior finishes, also influence reconstruction costs but generally have a smaller impact on the overall estimate.

The Importance of an Accurate Reconstruction Cost Estimator:

An accurate replacement cost estimate is critical for homeowners to have the right coverage. A sophisticated estimator tool, like the one integrated into Holistiplan, ensures that all relevant factors are accounted for—leading to a reliable and precise estimate that better protects homeowners in the event of a loss.

By following these steps and leveraging the system's advanced capabilities, you can provide accurate and tailored insurance recommendations for your clients, ensuring their homes are properly insured for reconstruction.