Need a Replacement Cost Estimate?

Do you need a Replacement Cost Estimate (RCE)? Insurance companies like California Fair Plan, AAA, USAA, and more are beginning to require these estimates, especially for a property that may be over a million dollars to rebuild.

If you dig deep enough into your current policy, you’ll see your insurance company has told you to obtain an RCE. The best RCE is created by a licensed builder. While not a guarantee, a current estimate of what it may take to rebuild your home can help protect you against being underinsured.

Replacement Cost Estimate – SAMPLE

Frequently Asked Questions

These estimates go by many names. Rebuilding Cost Estimates, Estimated Cost to Rebuild, or Reconstruction Cost Estimates. Regardless what your insurance company calls the estimate, it is an estimate which can help you determine the right amount of coverage for your homeowners insurance.

These days, insurance companies like the California Fair Plan, AAA, USAA, Nationwide, and others may require a Replacement Cost Estimate (RCE) in order to demonstrate a more accurate rebuild cost. Especially if the rebuild is likely to be more than $1.5 million.

Replacement cost insurance coverage “pays for the cost of replacing the home (or personal property) without deduction for deprecation,” according to United Policyholders. It is also “the maximum amount your insurer will pay for structural damage to your home”, says Ralph Richardson, CEO of Insuretech Insurance — an independent insurance broker.

Your rebuild cost will be determined from a blend of factors, encompassing construction expenses, home attributes, material quality, and area size. It represents the amount of money you might need to fully rebuild the home as it was but to today’s code.

It’s critical to remember that the replacement cost doesn’t equate to the market value of the property. The market value is derived from the potential sale price on the current market. The cost to rebuild your home will often vary quite extensively from the current market sale value.

Aside from our own building projects and expertise, BW Builder reaches out to general contractors around the state on a monthly basis to confirm local numbers. The estimated rebuilding cost reflected in your RCE comes from our experience building as well as our research with other builders, in other locations, asking them their current costing and what they are paying their subcontractors.

For example, building costs may be more expensive in the Tahoe region versus Sonoma County. There is a shorter build window in the mountains due to weather conditions. There are less employees to call upon which increases labor costs. And due to the distance from major suppliers, materials cost more to be shipped up the mountain. BW Builder RCEs are custom to each home so they can consider all local cost factors.

Insurance experts recommend replacement cost policies that give you the ability to reconstruct your home after a covered loss. That being said, each homeowner has their own needs for insurance. The market for homeowners insurance in California is confusing and limited, especially if your home is located in WUI.

We recommend people work with a licensed insurance agent to determine the best policy for your situation. Remember, an RCE will NOT change your insurance coverage. You might need it to obtain insurance but an RCE will not change any current policy. You will want to take the RCE to your insurance advisor and work with them to obtain the appropriate coverage for your home.

We can never speak for an insurance company and what they will or will not accept. That said, to date, we have created over 400 RCEs and they have all been found acceptable by insurance companies. Our estimates have been accepted by CA Fair Plan, AAA, Nationwide, State Farm, Farmers, USAA, GEICO, and more.

The key to a useful RCE is that it accurately reflect the cost to rebuild your home. A RCE from BW Builder is $150. For that price, you obtain a seven-page document in the form of an electronic .PDF that will give any insurance company all the detail they need to understand the possible rebuilding cost of your home.

Considering the main option insurance companies use, a report called Value360, doesn’t account for the specific costs of building in California and that many companies are now requiring an RCE to obtain coverage, an RCE from licensed builder in California, tailored to the details of your property, is the best way to advance your goal of obtaining proper insurance. A BW Builder RCE is a seven-page .PDF that contains everything an insurance company will need. It is accepted by all major insurance companies and is specifically created to estimate the cost to rebuild your home. BW Builder a licensed CA builder familiar with the costs to build in your area. That’s why BW Builder’s RCE is so valuable. More about our RCE:

  • Age of the home. As there are different building standards depending on the time your home was built, the year your home was built can give insight into what type of exterior construction you have, such as stucco or wood siding.
  • Square footage. As your home’s size increases, the expenses for replacement or reconstruction naturally escalate. The square footage directly influences the replacement cost, with more square footage leading to higher costs.
  • Finish. Home features encompass a wide range, spanning from flooring materials like carpet, tile, and hardwood to doors, windows, trim, and more. Each of these attributes impacts the replacement cost, with superior material quality correlating to higher replacement costs.
  • Fixtures. Similar to the finish, the caliber of the home fixtures is also taken into account. Fixtures encompass elements like your countertops, cabinets, and faucets.
  • Photos. If you upload pictures, they will be in the RCE and help an insurance company better understand the value of your home.
  • Pricing Methodology. The BW Builder RCE contains a two-page description of why our estimated costs can be relied upon by insurance company underwriters.

All of the above features in our RCE will specifically refer to your property.

Ready to get started with your Replacement Cost Estimate?

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The Benefits of a Replacement Cost Estimate

  • In Many cases, an RCE is a requirement for obtaining insurance in California.

  • Utilize this data to assist you in obtaining proper insurance coverage with CA Fair Plan and others.

  • Our RCE accounts for any dwelling, external dwelling, and includes code upgrade costs and also demonstrates the possible impact of “demand surge pricing” on building costs.

  • Allows you to provide your insurance company with reliable data so they can better help you with your insurance needs.

*For this type of estimate, we do not have to visit the property. It is a basic estimate which will combine your inputs below with our own research to come up with a professional and accurate cost estimate for rebuilding. For a more detailed and specific estimate, please visit our Scope of Loss page.

Get Your Home Rebuild Estimate Today! Only $150!

Get Your Home Rebuild Estimate Today! Only $150!

*BW Builder does not provide insurance advice. In California, it is up to an individual to determine their insurance coverage levels. Individuals need to discuss any Replacement Cost Estimate with a licensed insurance agent, legal adviser, or financial adviser to be certain your holdings are properly insured. Purchasing an RCE will not change your insurance. Insurance coverage is a discussion between an insured and their insurance company. BW Builder may not be held liable for inadequate insurance coverage. BW Builder does not give insurance advice, discuss insurance options, or in any way help you determine your proper insurance needs. BW Builder will NOT inflate dollar amounts on an estimate in order to assist anyone in obtaining more coverage. Any request or discussion of falsified estimate amounts will terminate your business relationship with BW Builder immediately. There are NO REFUNDS for this estimate. BW Builder does not guarantee an insurance company will adjust your coverage based on our findings. BW BUILDER GIVES NO ADVICE OR OPINIONS REGARDING INSURANCE COVERAGE. For a more detailed report needed after a disaster or loss, please see our Scope of Loss section.