Georgia does not have exemption from catastrophic events, like a fires, floods, tornados, or even hurricane-force winds.
Imagine one of these events damaging your home enough to cause you to rebuild. Now imagine the nightmare of not having enough money to cover that cost, even if you have insurance.
It probably leaves you wondering why it costs so much to rebuild? The rebuilding process proves expensive and important to have the right insurance in place to provide protection from unexpected costs.
Let's examine the factors contributing to the cost of rebuilding a home in Georgia and share how you as a homeowner can protect yourself and yours from unexpected expenses.
One of the biggest factors contributing to the cost of rebuilding a home is the dwelling amount. The dwelling amount is the limit on your home insurance policy that covers the cost of rebuilding your home.
If your home is destroyed, you'll need to have enough insurance to cover the cost of rebuilding. The dwelling amount is typically based on the replacement value of your home. Replacement value is the cost to rebuild your home using materials of similar quality and construction.
Keep in mind the difference between the dwelling amount and the market value of your home. The market value indicates what you could sell your home for on the open market. It's important to have enough insurance to cover the replacement value of your home, even if the market value is lower.
A number of factors impact replacement value, including:
Age and Condition
If you live in an older home built with inferior materials, it will likely cost more to rebuild than a newer home constructed with high-quality materials.
The same is true if your home is in poor condition. It will take more labor and materials to rebuild a run-down home than one that's well-maintained.
All this adds up to a higher replacement value.
Type of Construction
Another factor that contributes to the cost of rebuilding a home is the type of construction. Homes that are built with more expensive materials, such as brick or stone, will cost more to rebuild than homes made with less expensive materials, like wood frame construction.
Similarly, homes that are more complex in design, such as those with multiple levels or custom features, will also cost more to rebuild.
Finally, the amount of damage done impacts the cost of rebuilding a home. If only a small portion of your home received damage, it will likely cost less to repair than if your entire home got destroyed.
However, even if only a small portion of your home took damage, you may still need to replace some of the materials and finishes, such as flooring, walls, or cabinets.
If you suffered damage to your home, make certain to work with a qualified insurance agent to make sure you have enough coverage to rebuild. The cost of rebuilding a home can prove expensive, but not compared to the cost of losing everything you worked so hard for.
Contact us at Arrow Insurance, an independent insurance agency, to discuss your options and make sure you have the proper protection in the event of a disaster.
If you know you'd like a quote, we can help you out.
We will shoot straight with you.