Insure the building, not the price.
A worked example
Starting figures
- Floor area (sq ft)
- 1,800
- Rebuild cost per sq ft
- $165
- Contingency
- 12%
What it returns
- Rebuild sum insured
- $332,640
- Base rebuild
- $297,000
How to read the results
With the defaults above, rebuild sum insured works out at $332,640.