When a building is destroyed, your insurance company will work to make you or your business whole. In most cases, the insurance company will pay for reconstruction so that you can continue to live or work the way you did before the loss. There are many factors that govern how much it will cost to rebuild. There are higher costs associated with reconstruction than with building ground-up for a number of reasons:
The Scale of the Project
When homes are newly built, contractors have the advantage of buying in bulk. They get discounts by purchasing large amounts of materials at once. When you buy tile for every bathroom in the neighborhood, you will pay less than if you are buying for a single home.
Ease of Access
When a new house is built, it is on an empty lot. There are no large trees that have had years to grow. There is a blank space where they build up from the foundation.
With a reconstruction, you may be dealing with a large amount of landscaping or other structures, that can make the site less accessible. In many cases, there will be expensive and time consuming demolition and debris removal to do first.
Unusual or Specialty Materials Will Cost More
Very few of us choose to continue living with the basic builder’s cabinets in our kitchens. Many of us also engage in home improvement projects over the years that can include expensive tile or slate roofs, solid doors, stained or leaded glass windows and granite countertops.
These will all cost more than the basic materials used when a house is first built. If your home is to be restored to its previous condition, it will take longer and add to the expense.
Building Codes Change Over Time
Older homes were built during times when building codes were far less strict. Reconstruction of the home will need to comply with current regulations. This may mean investing more for fire-retardant roofing materials, rewiring to meet current standards, installing hurricane impact glass windows, or re-working the layout to be handicap-accessible.
These and other factors all play a part in the costs of the reconstruction of your home. Talk to builders, your mortgage holder and your insurers to learn more about what is involved and the best path for you to take.