These Four Things Will Increase The Reconstruction Cost Of Your House

People purchase homeowners insurance for different reasons, but the chief one is so that they can repair or reconstruct their homes in case of damage. That's why it's important to ensure that your insurance coverage can fund the cost of reconstructing your home to its present state. This is especially important if it has been long since you evaluated the cost of rebuilding your home. After all, these four factors can seriously affect the cost of the reconstruction:

Home Renovations

Serious renovations to your house increase its value as well as its reconstruction cost. For example, upgrading your kitchen, installing a new garage door or finishing the basement means that those areas must be rebuilt to their latest standards in case the house is damaged. Therefore, home insurance companies want you to inform them before you undertake a major renovation. They need to recalculate your premiums considering the renovated parts of the house so that you are fully protected.

Rise in the Cost of Construction Materials

A rise in construction materials will increase your home's reconstruction costs. Prices of construction materials may fluctuate during the short-term, but they tend to rise over the long-term. Therefore, if you have had the same house for two decades or so, don't expect the shingles, sand, cement or lumber to cost the same as they did when your house was first constructed. Don't think you are immune to this issue if your house is relatively new, materials' cost sometimes rises even after a short time. For example, when a major roofing manufacturer in your neighborhood stops production, the materials' cost may rise since you must go further for them.

Rise in Labor Costs

Every time construction workers get a raise, you also expect your construction costs to increase a bit. Labor costs often rise when there is an increase in constructions. Unionized workers can also agitate for new salaries, which their employers may be forced to pass on to consumers. The result is an increase in your property's reconstruction costs.


No industry is immune from the effects of inflation. When inflation rises, transport costs rise, manufacturing costs increase, labor is affected and even oil prices are affected. All these things affect the construction industry, which means you will have to bear a higher cost to reconstruct your home if it's damaged.

Therefore, it's advisable to periodically evaluate the cost of reconstructing your home so that your insurance coverage is always adequate. For more information, check out sites like