Replacement Cost Reality Check

Step by step

1. A seeded table maps each state to a regional construction-cost baseline in dollars per square foot (illustrative figures, reviewed periodically).
2. The baseline is multiplied by your finished square feet and a quality-tier multiplier (basic 0.85, standard 1.0, custom 1.25, luxury 1.6).
3. A 1.10 code-upgrade factor reflects that rebuilding must meet current building codes. Carrier estimators usually place that cost under ordinance-or-law coverage rather than inside Coverage A, so a professional estimate can sit around 10% below this band.
4. The result is presented as a ±15% band — never a single number — and compared with your stated Coverage A.

The formula

Point estimate = regional $/sqft × square feet × tier multiplier × 1.10; band = point ± 15%.

Assumptions and their default values

Some of these change with the state you select.

Where the figures come from

• Broad published construction-cost ranges by US region (illustrative, periodically reviewed).

Important disclosures

1. This tool is educational only. It illustrates potential exposure using the assumptions shown — it is not insurance advice, a price, or an offer of coverage, and it does not determine whether any coverage amount is right for you. Policy language varies; review your actual policy and discuss your situation with a licensed insurance professional.
2. The rebuild band is a rough educational estimate built from broad regional averages — it is not a replacement-cost appraisal and will not match a professional estimate. Custom features, local labor and material costs, and code requirements can move real rebuild costs well outside this band.
3. Regional cost figures are illustrative and reviewed periodically; they may lag your local market.
4. The band includes a 1.10 code-upgrade factor inside the rebuild figure. Carrier estimators usually treat the cost of rebuilding to current codes under separate ordinance-or-law coverage rather than inside Coverage A, so a professional estimate can sit around 10% below this band for that reason alone.
5. Only a professional replacement-cost estimate arranged through your agent (e.g. CoreLogic or Verisk 360Value) should inform any change to your dwelling limit.