{
    "name": "Property Insurance Replacement Value Calculator",
    "url": "https://calculators.geekmidst.com/calculators/property-insurance-replacement-value-calculator",
    "markdown": "https://calculators.geekmidst.com/calculators/property-insurance-replacement-value-calculator.md",
    "category": "Real estate",
    "description": "Estimate a building’s rebuild (replacement) value for insurance from area and build cost, then check your sum insured against a coinsurance or average clause.",
    "summary": "Buildings insurance should cover the cost to rebuild, not the market price. Rebuild cost is the floor area times a local build rate, plus demolition, professional fees and an allowance for cost inflation.",
    "also_called": [
        "Rebuild cost calculator",
        "Home insurance replacement cost calculator"
    ],
    "applies_to": "Worldwide",
    "last_updated": "2026-10-29",
    "computation": "Results are computed in the visitor’s browser on the HTML page. This API describes the calculator; it does not compute results.",
    "inputs": [
        {
            "name": "area",
            "label": "Floor area",
            "type": "number",
            "default": "2000",
            "unit": "sq ft or m²"
        },
        {
            "name": "cost_per_area",
            "label": "Rebuild cost per unit area",
            "type": "number",
            "default": "150"
        },
        {
            "name": "extras",
            "label": "Garage, outbuildings, walls and extras",
            "type": "number",
            "default": "20000",
            "optional": true
        },
        {
            "name": "demolition_pct",
            "label": "Demolition and debris removal",
            "type": "number",
            "default": "5",
            "unit": "%",
            "optional": true
        },
        {
            "name": "fees_pct",
            "label": "Professional fees and permits",
            "type": "number",
            "default": "10",
            "unit": "%",
            "optional": true
        },
        {
            "name": "inflation_pct",
            "label": "Building cost inflation (per year)",
            "type": "number",
            "default": "4",
            "unit": "%",
            "optional": true
        },
        {
            "name": "months",
            "label": "Months of inflation to allow for",
            "type": "number",
            "default": "12",
            "unit": "months",
            "optional": true
        },
        {
            "name": "cover",
            "label": "Current sum insured",
            "type": "number",
            "default": "300000"
        },
        {
            "name": "coinsurance_pct",
            "label": "Coinsurance / average requirement",
            "type": "number",
            "default": "80",
            "unit": "% of replacement value"
        },
        {
            "name": "claim",
            "label": "Example partial claim",
            "type": "number",
            "default": "100000",
            "optional": true
        },
        {
            "name": "currency",
            "label": "Currency",
            "type": "currency",
            "default": "USD"
        }
    ],
    "outputs": [
        {
            "key": "replacement_value",
            "label": "Estimated replacement value",
            "format": "currency"
        },
        {
            "key": "base_cost",
            "label": "Building and extras",
            "format": "currency"
        },
        {
            "key": "allowances",
            "label": "Demolition and fees",
            "format": "currency"
        },
        {
            "key": "inflation_uplift",
            "label": "Inflation allowance",
            "format": "currency"
        },
        {
            "key": "cover_pct",
            "label": "Sum insured as % of replacement value",
            "format": "percent"
        },
        {
            "key": "shortfall",
            "label": "Shortfall in cover",
            "format": "currency"
        },
        {
            "key": "required_cover",
            "label": "Minimum cover to avoid a reduced payout",
            "format": "currency"
        },
        {
            "key": "payout",
            "label": "Payout on the example claim",
            "format": "currency"
        }
    ],
    "formula": {
        "text": "Base = Area × Cost + Extras;  Replacement value = Base × (1 + Demolition% + Fees%) × (1 + Inflation)^(Months ÷ 12);  Required = Replacement value × Coinsurance%;  Payout = min(Claim, Cover, Claim × Cover ÷ Required) if Cover < Required, else min(Claim, Cover)",
        "variables": {
            "Cover": "the sum insured on your policy",
            "Coinsurance%": "the share of replacement value you must insure to avoid a proportional cut"
        }
    },
    "worked_example": {
        "inputs": {
            "area": "2000",
            "cost_per_area": "150",
            "extras": "20000",
            "demolition_pct": "5",
            "fees_pct": "10",
            "inflation_pct": "4",
            "months": "12",
            "cover": "300000",
            "coinsurance_pct": "80",
            "claim": "100000",
            "currency": "USD"
        },
        "steps": [
            "Base = 2,000 × 150 + 20,000 = $320,000.",
            "Add 15% for demolition and fees = $368,000; add 4% inflation = $382,720.",
            "80% of 382,720 = $306,176 required; cover is $300,000.",
            "Payout on a $100,000 claim = 100,000 × 300,000 ÷ 306,176 = $97,982.86."
        ],
        "result": "Rebuilding would cost about $382,720; with $300,000 of cover you are slightly below the 80% requirement, so a $100,000 claim pays $97,982.86."
    },
    "interpretation": "Raise the sum insured to at least the replacement value if you can; anything below the coinsurance level cuts every partial claim, and anything below the full value leaves you short after a total loss.",
    "assumptions": [
        "The rebuild rate, percentages and policy terms are your own figures.",
        "Allowances are a percentage of the building and extras cost."
    ],
    "limitations": [
        "Not a professional rebuild valuation; listed, unusual or high-specification buildings can cost far more.",
        "Policy terms vary; some insurers use 100% average, some none, and contents cover is separate."
    ],
    "rules": null,
    "faqs": [
        {
            "question": "Why is rebuild cost different from market value?",
            "answer": "Market value includes the land and location, which do not burn down. Rebuild cost can be lower or, for older or special buildings, much higher."
        },
        {
            "question": "What is the average or coinsurance clause?",
            "answer": "If you insure for less than the required share of the replacement value, the insurer pays the same proportion of any claim. It stops people saving premium by underinsuring."
        }
    ],
    "sources": [],
    "related": [
        {
            "name": "Construction to Property Value Calculator",
            "url": "https://calculators.geekmidst.com/calculators/construction-to-property-value-calculator"
        },
        {
            "name": "Inflation Calculator",
            "url": "https://calculators.geekmidst.com/calculators/inflation-calculator"
        },
        {
            "name": "Concrete Calculator",
            "url": "https://calculators.geekmidst.com/calculators/concrete-calculator"
        },
        {
            "name": "Percentage Calculator",
            "url": "https://calculators.geekmidst.com/calculators/percentage-calculator"
        }
    ],
    "disclaimer": "This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ.",
    "publisher": "GM¹X CalcVerse"
}