Reconstruction costs

Reconstruction costs
 

 
Have you done any major renovations to your home lately? If so, it is likely that this will affect the costs associated with rebuilding your home, and it would be advisable to discuss this now with your insurance professional. By remembering to regularly review your home insurance coverage with an insurance professional, you are taking a step in the right direction to maintain a level of protection sufficient to be able to rebuild your home in the event of a loss.

So why do reconstruction costs differ from the market value of a house, or even the cost of new construction?

A number of factors can influence reconstruction costs, for example:

Economies of scale - In the original construction, a house is usually part of a project with a large number of houses built simultaneously. Thus, the contractor can purchase the materials and installations required for the project in a single transaction, often at a sliding scale on volume. Just as buying 50 or 100 tubs at the same time will be cheaper per unit than buying a single tub, the same economic benefit may apply to buying in quantity of almost any other as well. element necessary for home construction. This can represent savings of several thousand dollars compared to building a house on its own.
Reverse Reconstruction - New construction almost always follows the pattern of laying a foundation and erecting the construction on it. When rebuilding is needed and you need to rebuild a house that is not a total loss, you have to start by tearing off the roof and working from the top down. Since this process is labor intensive and takes longer to complete, it is usually more expensive as well.
Site preparation - When a house is to be rebuilt, the site on which it is erected must be prepared before any new construction can begin. In general, this means additional costs for the demolition of remaining (and unusable) structures and the clearing of the resulting debris. In the event of a fire, it may also be necessary to remediate the floors. In new construction projects, site preparation is usually limited to the costs of brush clearing and grading.
Labor costs - Bringing together people from different trades such as carpenters, masons, drywall installers, electricians, plumbers, roofers and painters for an extended period of time can help with better planning and efficient use. If a house is not ready for the work that requires their special expertise, these workers can likely move on to a house that is in this stage of construction. This flexibility in planning is usually not possible when working on a single house and has a huge impact on the overall costs, considering that labor is one of the most important elements of the house. reconstruction costs.
Accessibility - Rebuilding a house that has been destroyed is often required in established neighborhoods with mature trees, lawns, landscaping and fencing. These and other obstacles can limit access to the job site and thus increase the costs of getting the necessary reconstruction materials to the job site.
Older or Custom-Built Homes - In general, rebuilding older or custom-built homes should generally include the replacement of character-defining and finishing elements that are considered unusual compared to more conventional style homes. Whether reconstruction materials are scarce due to age or classified as "top of the line", they are expected to be more expensive to replace. Some examples of expensive building elements to replace are tiled or slate roofs or floors, slatted or plaster walls, support paneling, tin ceilings with exposed beams or custom moldings, solid wood doors , ornamental fireplaces, windows with lead-set panes or stained-glass windows, shaped stairs and custom-made ironwork.
Updated Building Codes - For homes that are more than a few years old, it would be normal to expect building codes to have changed since the original construction. Adherence to newer codes may require repairs to electrical wiring and plumbing, the use of safety glass, or the use of materials