Home Replacement Cost Estimator
Replacement cost is what it would take to rebuild today. Not market value, not purchase price. This is what Coverage A on your homeowner policy should reflect.
Your home
Basic = builder grade; mid = good finishes; premium = custom kitchens/baths; luxury = high-end throughout.
Each bathroom over 2 adds ~$8k to rebuild cost.
Features
Estimated replacement cost
$385000
This should be your Coverage A (dwelling) target on a homeowner policy. If your current Coverage A is much lower, you may be underinsured — verify with your agent.
Math breakdown
Why replacement cost is NOT market value
Market value includes the land your home sits on; replacement cost does not (the land does not burn down). Market value also reflects what buyers will pay, which is influenced by location, schools, and comparable sales. None of that matters when a storm destroys the house. The only number that matters then is how much it costs to rebuild the structure.
That is why a $400,000 home in Birmingham might have $280,000 of replacement cost (land worth $120k) and a $400,000 home in Hoover might have $320,000 of replacement cost (smaller lot). Same market value, different Coverage A targets.
Why underinsured matters at claim time
Most homeowner policies include a coinsurance clause requiring 80% of replacement cost as your Coverage A limit. If you fall below that, the carrier prorates your claim. A partial loss gets paid at a fraction of what it would otherwise pay. Verifying Coverage A reflects current replacement cost is the single highest-impact policy review item.
When this calculator underestimates
Costs in 2026 are tracking 6-12% higher than 2025 due to materials and labor. The estimates above are mid-year 2026 averages. Homes with significant upgrades since purchase (new kitchen, finished basement) or in high-demand zip codes (Mountain Brook, downtown Nashville) often need an extended replacement cost endorsement that adds 25-50% on top.
