Auto, Home, Business, Life, Health, Umbrella and Others Let us help. We can select a portfolio that's right for you. Are you paying too much for Insurance? Get a quote here. << Back New construction verses reconstruction: Regardless of a home’s age, when rebuilding a home with severe damage there are costs associated with reconstruction that are not part of the original construction costs. As a result, these reconstruction costs need to be included in the insurance value to ensure adequate coverage to completely rebuild your home. New homebuilders usually purchase materials in bulk and they realize great savings. A reconstruction contractor typically will not receive these savings. Materials for the job are usually unique and specific to the home and, therefore are usually more expensive. Most new constructions start with an open job site and there are no major encumbrances that will hinder the construction process. Before any reconstruction can begin on damaged home, debris must be removed. The cost to remove the debris and get rid of it has dramatically increased over the last several years. Reconstruction contractors usually have to work around obstacles with care so as to not damage the home or other structures that remain undamaged. Time and expense to work around these obstacles adds to the overall cost of the project. There is also significant Homeowner involvement when it comes to reconstruction. Naturally the homeowner wants the house rebuilt just right and will regularly interact with the contractor. This can add time and expense to the project. New construction overhead and profit is fairly predictable because of the repetition involved. They usually work within a given time frame with favorable time periods for scheduling work crews. Reconstruction contractors must work in a more restrictive time frame due to an unplanned event. The contractors are working on shorter notice and tighter schedules. Therefore it’s an increased cost associated with these timelines. Newly constructed homes are built with the present building codes while older homes usually need to be brought up to code. As you can see there is a lot more involved when reconstructing a home. Please call us today to make sure you have the proper insurance coverage. Our agency will assist you in determining your homes reconstruction value. home page / about us / insurance / investments / contact us / get a quote / file a claim Copyright © 2005 The Baker Group.  All Rights Reserved  Site Design by NetZopia.