If your home is destroyed by a fire or other catastrophe, will you be able to rebuild it?
Learn what a reconstruction cost estimate is and how to calculate it for your home.
What is a reconstruction cost estimate?
Your reconstruction cost estimate (also known as your dwelling coverage limit) is part of your homeowner’s insurance policy. It refers to the cost of rebuilding your home and any attached structures as they were before a total loss.
The most important thing to know about a reconstruction cost estimate is that it’s not the same as your house’s current market value.
How is it calculated?
The simplest way to determine your home’s reconstruction cost estimate is to look up the average per-foot rebuilding costs (labor and materials) where you live. Multiply that per-foot cost by the square footage of your home and any attached structures.
Reconstruction Cost Estimate vs. Home Appraisal
A home appraisal looks at the real estate market in your area and comparable properties to determine a sale price for your house based on its location, condition and other relevant factors.
In contrast, a reconstruction cost estimate is solely about the price of labor and materials. If you had to build your home from the ground up, to resemble its current condition, what would it cost?
It’s important to choose the right amount of dwelling coverage, or you could be left with out-of-pocket costs for the difference between your coverage limit and the actual reconstruction cost.
What’s the difference between a reconstruction cost and a replacement cost?
The replacement cost for your home refers only to the price of labor and materials. Reconstruction cost accounts for additional costs related to rebuilding such as demolition, debris removal, and more.
Have questions about your dwelling coverage limit? Just reach out, and we’ll be happy to help.
You may be the kind of person who fires up the grill all year long at tailgating parties, or maybe you wait for a warm summer day and a backyard full of friends before you put on your apron. Either way, grilling can be one of life’s simple pleasures.
Unfortunately, where there is fun there is also the potential for safety issues. For example, did you know that leaving the grill unattended, not cleaning grease or fat build up properly, or placing the grill too close to combustible siding can cause injuries, fires and property damage?
Charcoal or Gas?
Nearly 9,000 home fires a year involve grills, according to a National Fire Protection Association report. Of all the home fires involving grills, gas-fueled grills accounted for four out of five fires, while 16% involved charcoal or other solid-fueled grills.¹ Gas and charcoal grills each have ardent advocates, who praise the convenience of gas or the flavor of charcoal. Whichever your preferred grilling method, follow these important safety considerations.
Gas Grill Safety
A leak or break was the leading factor contributing to gas grill-related fires, according to the NFPA report.
Charcoal Grill Safety
The leading cause of structure fires from use of charcoal grills was leaving or placing an object that could burn too close to the grill, according to the NFPA study.
Here are some other important tips to help you keep danger away when you are enjoying food and fun.
Choose a safe location for your grill. Keep grills on a level surface more than ten feet away from the house, garage or other structures. Keep children and pets away, as well as overhanging branches. Grills should not be used on a balcony or under an overhang. Avoid placing grills too close to combustible deck rails.
Grill outside only. Never use a grill in a garage, vehicle, tent or other enclosed space, even if ventilated, due to risk of harmful carbon monoxide buildup.
Keep the grill going on a cold day. During cool weather days, avoid wearing a scarf or other loose clothing that may catch on fire. Consumer Reports recommends shielding the grill from wind, placing it about ten feet from combustible surfaces and materials, and keeping the lid closed to retain as much heat as possible. Allow extra time for pre-heating the grill in colder weather and check temperatures of meat and fish with a meat thermometer to ensure that food is safe to eat.
Teach kids to stay safe. Make a “kid-free zone” of at least three feet around the grill and areas where hot food is prepared or carried. Children under five are especially vulnerable to burns from contact with a hot grill surface. Grill contact accounted for 37% of burns seen at emergency rooms in 2014 involving children under five.
Remember post-grilling safety. Keep your grill clean by removing grease or fat buildup from the grills and in trays below the grill. If you grill with charcoal and need to dispose of the coals, soak them in water to extinguish them before disposing in a metal container. Otherwise, cover the grill tightly and close the vents, this should extinguish the coals and whatever is left will be ready for next time.
Moving to a new place is certainly exciting, but it can also be stressful — and expensive. Once you factor in things like movers, packing materials, truck rentals, gas and more, the costs can creep into the hundreds, maybe even thousands of dollars, for just a single move.
Are you planning a move soon? Don't want to break the bank in the process? Fortunately, a little forethought and creativity can help in that department.
Here are five ways to help reduce your costs and keep a tight rein on your moving budget:
1. Shop Around for a Moving Company
Moving companies typically charge hundreds of dollars for their services, plus extra for things like gas, mileage and larger items like pianos and furniture. If you're going to hire a professional mover, shop around first. Get quotes from at least three different moving companies, and double-check the line-item charges. Does the quote include the truck, all protective materials, gas, mileage and larger furniture items? Does it provide insurance coverage in case of damage to any items you’ll be moving? If not, learn what adding these will cost you if they become necessary.
You can also consider local “mom and pop” moving teams or using an online service that matches freelance labor with local demand to help with everyday tasks. These come at a cost, of course, but are typically more affordable than a large moving company that has less flexible pricing.
Another great way to reduce your cost is to schedule your move for the winter or fall, if that is an option for you, as that’s when demand for professional movers is typically low. Weekdays are also a good choice, as most people move on the weekends. A moving company may be willing to give you a better deal if you move during these low-demand times, as they may be less busy and looking to fill their schedule. It may be worth exploring these options.
Pro tip: Consider doing a little research by checking out organizations online that provide consumer reviews of businesses. Before booking your movers, look at their reviews to get a sense of a company’s track record with other customers and try to verify that the company is legitimate. Note that none of these websites is a guarantee of a perfect experience, but they may help you with your decision.
2. Consider a DIY Move
Depending on how much you have to move and how heavy or cumbersome the items are, you may want to consider forgoing professional movers altogether if it looks as if your belongings can be managed without hiring help. If you have dependable family and friends that are willing and able to help with the packing, loading and transport, you might consider offering pizza or a free meal as a token of your appreciation in exchange for their help.
If you have larger items, consider renting a small rental truck for a few hours. Get the smallest size possible and be sure to fill up the fuel tank before you return the vehicle. (It may cost you more if you leave the rental truck in need of gas that the moving company must take care of itself.
Pro tip: Plan so that you're not moving during rush hour. Heavy stop-and-go traffic can drive up your fuel costs as well as delay your move.
3. Only Move What You Need
It's important to pare down your belongings before a move. That means donating, selling or throwing away any items you no longer use, need or plan to use in the future.
For one, this reduces your load and, subsequently, your costs to move it. Additionally, if you’re motivated to sell some of your unwanted items, you can put those extra funds toward your moving costs — or use it toward the cost of furniture or decor for your new place.
Here are some options for downsizing your household before you move:
Offloading some belongings will also make unpacking easier (not to mention faster).
Pro tip: Measure your furniture and make sure it will fit in your new home, as well as through necessary access points. If it won't fit, sell it and consider using the funds for replacement furniture once you're in your new place.
4. Get Creative with Your Packing
Buying boxes, bubble wrap, tape and packing peanuts can get expensive. Instead of purchasing these items, take a more creative approach and use things you already have. Sheets, towels, blankets and cloth napkins all work great as packing materials, and they all need to be packed up anyway, so why not use them? You can also use your own duffel bags, luggage, purses and backpacks rather than cardboard boxes.
Once you run out of these items, try one of these resources for free or low-cost boxes:
Pro tip: Start saving the plastic and paper bags from your shopping trips. These make good packing materials and can even be used to help protect fragile items.
5. Track and Deduct Your Expenses
If you're a member of the military (or someone in your household is) you may be able to deduct your moving expenses1 on your annual tax returns. To qualify, you'll need to be moving due to a permanent change of station.
If you're eligible, you'll be able to deduct the costs of moving, storage, travel, lodging and other expenses you incur due to the move.
Pro tip: Keep a detailed record of your moving costs if you qualify for this deduction. Save all your receipts and invoices and keep them somewhere safe until tax season rolls around.
Are you moving to a new place? Don't forget to update your homeowners insurance policy. Use your move as an opportunity to ensure all your belongings, valuables and new property are protected. Contact your insurance agent to learn more about home insurance coverage and how it can safeguard your new home and family.
Did you ever leave for work without turning down the heat on a blustery winter day? Or head out for a day trip in the middle of summer without dialing down the air conditioning for your dog? A smart thermostat can help you heat and cool your home more efficiently, monitor your energy consumption and let you control your home’s heating and AC systems from your smartphone, wherever you may be. These devices can help protect your home from damage caused by frozen pipes by alerting you if your home is getting dangerously cold. But there are also some important safety considerations.
How Smart Thermostats Work
Unlike traditional and programmable thermostats, many smart thermostats learn and adapt based on temperature, humidity and your family’s behavior, including when you and your family are likely to be home, awake and asleep. Your smartphone acts as a remote control for your heating, ventilation and air conditioning systems, allowing you to change the temperature from wherever you have a signal. Another benefit includes automated notifications if the temperature in your home rises or falls above or below a set threshold. For homeowners who travel frequently or who own a second home, these devices offer the ability to remotely monitor their property.
Key Considerations for Using Your Smart Thermostat
During cold temperatures, with a more traditional thermostat, you turn down the temperature when you leave your home and dial it back up when you return. With a smart thermostat app controlled by your phone, you are able, and might be more motivated, to turn down your system to a low temperature to conserve energy from wherever you may be. But be wary as turning the thermostat down too low could result in frozen pipes, Travelers Risk Control professionals warn. Be sure to keep the temperature at 55°F or higher to help keep the interior of the floor and wall cavities, where water piping can be located, above freezing temperatures.
As part of the Internet of Things, smart thermostats are also subject to hacking and privacy concerns. You may think there is less of a safety concern than with smart locks or other security-related smart devices, as there is less incentive for hackers to target these devices. However, smart thermostats can provide details about your daily comings and goings, which a thief could find insightful.
A prudent step would be for homeowners to make sure their devices are hard-wired to the Internet, rather than relying on a Wi-Fi connection. Choose a strong password and evaluate any specific safety concerns before you decide to buy a smart thermostat. As with any smart device, make sure it is compatible with your other devices or hub because not all devices communicate well with each other. The packaging for these smart devices may not offer detailed installation instructions, so you may want to consult a professional to help install them properly.
Conventional wisdom has long held that kitchens and baths sell homes. Those are also two of the more expensive areas to tackle for home improvement, but if you make sound design decisions and choose the right materials, you could end up making your home more appealing to potential buyers – and a more enjoyable place for you to live. And, if you’re handy, some of these ideas may even be great DIY (do-it-yourself) home projects.
A study from the National Association of Realtors1 confirms that kitchens and baths still top the list of interior home improvement projects that appeal most to potential buyers. The survey ranked the projects by the percentage of the remodel cost that would likely be recovered based on the home’s resale value after the remodel. These five home improvements can potentially provide the biggest bang for your buck when it comes to ROI.
1. Complete Kitchen Renovation
National Association of the Remodeling Industry’s (NARI®) cost estimate for the project: $68,000
REALTORS® estimated cost recovered: $40,000
Percent of value recovered from the project: 59%
The look and feel of a kitchen can serve as shorthand for how up to date the owners have kept a house. Potential buyers have been known to rule out homes based on kitchens alone. Stainless steel appliances and granite countertops continue to be on many buyers’ checklists, especially those who want to move right in and start entertaining.
The top reason for renovating a kitchen, cited by 24% of homeowners, was to upgrade worn-out surfaces, finishes and materials. According to the Remodeling Impact Report, 10% of realtors said a completely renovated kitchen most recently helped them clinch a deal, resulting in a closed sale.
2. Kitchen Upgrade
NARI’s cost estimate for the project: $38,300
REALTORS® estimated cost recovered: $20,000
Percent of value recovered from the project: 52%
A less expensive alternative to completely gutting a kitchen is an upgrade to the current design. Replacing dated appliances, refinishing cabinets and changing out tile backsplashes are some cost-effective updates that can still modernize a kitchen and make it more appealing to buyers.
While 12% of realtors suggest that sellers completely remodel their kitchens, 57% have suggested a kitchen upgrade. Twenty percent of realtors have said a kitchen upgrade most recently helped complete a deal. In addition to the resale value, kitchen improvements can also help you enjoy your time in your home, with better functionality and livability cited by 29% of respondents as the most important result of their remodel.
Travelers wants to help you protect the things that matter to you. We offer a wide breadth of products so you can be covered at home and on the road.
3. Bathroom Renovation
NARI’s cost estimate for the project: $35,000
REALTORS® estimated cost recovered: $20,000
Percent of value recovered from the project: 57%
Bathrooms are another place where a home can show its age, and potential buyers may hesitate at the cost and work involved in remodeling an outdated bathroom after buying a home. Still, while 33% of realtors have suggested sellers complete a bathroom renovation before completing a sale, only 4% said the project most recently helped them complete a deal.
4. New Bathroom
NARI’s cost estimate for the project: $60,000
REALTORS® estimated cost recovered: $30,000
Percent of value recovered from the project: 50%
A remodeling decision often driven by function rather than a desire to modernize, adding a new bathroom is nearly as expensive as completely remodeling a kitchen, but with less of a “wow factor” for potential buyers. With only 5% of realtors suggesting that sellers add a bathroom and only 1% saying the project most recently helped clinch a deal for them, this may be one project that makes more sense for homeowners planning to be in their homes for several years.
5. New Master Suite/Owners’ Suite
NARI’s cost estimate for the project: $150,000
REALTORS® estimated cost recovered: $75,000
Percent of value recovered from the project: 50%
The costliest project on the list, a new master suite or owner’s suite, is another project that may have greater value to you while living in the home rather than in making it attractive to future buyers. Sixty-five percent of respondents said they have a greater desire to be home since completing the project. Only 3% of realtors have suggested that sellers complete an owner’s suite before attempting to sell, and less than 1% said the project most recently helped clinch a deal for them.
Still deciding where to focus your budget for home improvement? Make a list of the reasons you’re considering each project, and be sure to consider the impact on your home insurance, too. Want to attract future buyers and increase the value of your home? Kitchens and bathrooms remain a good place to start.
If you plan to remain in your home for a number of years, you may want to update a bedroom, add a bathroom, convert a basement to a living area or tackle any other project that will add to your own appreciation of where you live.
There are many common myths about potential dangers in and around the home that can keep some homeowners up at night. However, the gap between myth and fact can make all the difference when it comes to reducing risk in your house. So what does the data tell us are the biggest risks to your home?
From leaking valves to house fires, a look at Calfee Insurance Claim data reveals the facts about the most frequent causes of homeowners’ claims, as well as the costliest. The answers may surprise you. While some risks are common nuisances we are all too aware of, others can be catastrophic. To help keep your home, your valuables and your family safe, you will want to take steps to protect them.
Danger #1: Water Damage
Many people think of damage from hurricanes and heavy rains when they think of water damage. But according to Travelers Claim data from 2013-2020, more property losses resulted from non-weather water claims (23%) than weather-related water claims (15%)*. Non-weather water claims can involve plumbing-related losses, such as pipes, drains and valves, as well as appliance issues. Learn more about common causes of water damage and the steps that you can take to help prevent it.
Danger #2: Weather-Related Roof/Flashing Damage
Wind, hail and weather-related water damage accounted for more than half, or 53%, of all Travelers property loss claims between 2013-2020. Falling limbs and branches weighed down by snow and freezing rain can cause roof/flashing damage. It is a good idea to inspect trees on your property to help prevent damage caused by falling tree limbs. Learning how to identify and remove ice dams can also help you avoid costly damage in the winter months.
Danger #3: Frozen Pipe Damage
Frozen water pipes are considered a potential source for catastrophic property damage, and make the list of Travelers’ five costliest sources of homeowner claims. While a sub-item of weather-related water loss, it is so significant, it deserves special mention. The good news is you can take steps to help prevent your pipes from freezing by identifying pipes that are most at risk and taking steps before winter arrives to help insulate them. During the winter, you may consider using a smart thermostat to manage and monitor that your heat is set at a safe level to help avoid freezing, and to receive notifications if the temperature in your home drops unexpectedly.
Danger #4: Theft
Theft from the premises makes the list of top causes of property loss claims, accounting for 4% of losses. There are many steps that you can take to help make your home less attractive to thieves, including landscaping with theft prevention in mind, adding outdoor lighting and creating a plan to make your home appear occupied while you are away. There are a number of methods to monitor your home to help minimize the theft potential, including smart home alarm systems.
Danger #5: Fire
Although fires do not occur as often as other incidents around the home, the damage that they can cause puts fire at the top of the costliest types of claims, according to Travelers Claim data from 2013-2020. Fire and related damages accounted for 27% of claims as measured by costs paid out. Fires can start from cooking, overloading circuits, and improperly using a wood stove, among other causes. Learn more about the potential wood stove safety tips, and how to help protect your home.
Frozen pipes can present an invisible threat – one that you might not recognize until the weather starts to warm. By then, the water damage can be significant and costly. Fortunately, keeping your home warmer, at a consistent temperature, and better insulated can help protect your pipes from freezing this winter.
What Do You Do if You Have a Frozen Pipe?
If you suspect pipes in your home have been exposed to freezing temperatures, or water is not flowing through a faucet normally, follow these steps to help reduce the potential for water damage:
Why is a Frozen Pipe a Concern?
When water begins to freeze, it expands. This can cause both plastic and metal pipes to burst, possibly leading to significant water damage to your home.
Which Pipes Are Most at Risk?
Pipes that are most exposed to the elements, including those outdoors and along the exterior walls of your home, may need extra protection during winter months. These include the following:
How to Help Prevent Frozen Pipes
Going online has become part of everyday life, whether it is for everyday activities such as shopping, sending email or paying bills, and managing your accounts. But data breaches, in all their forms, can potentially expose the personal information that we share online, putting consumers at risk of identity theft.
According to the Consumer Risk Index, 57% of Americans worry about online identity theft. Fortunately, there are steps that consumers can take, including not opening unsolicited emails and avoiding unsecure websites, to protect their personal information while online.
The following tips can help you learn how to help stay safe online:
Emails and Attachments
General Online Safety
Is Your Home Insured to Its Replacement Cost?
If you lost your home in a fire, how much would it cost to rebuild it? The answer may be different than you think. And if your home isn’t insured to its full replacement cost, your homeowners policy may not cover the full cost for you to rebuild it in the event of a covered loss.
Rebuilding costs could differ from what you paid for your home and be more than its current market value what it would sell for today – especially in areas where the value of real estate has changed. A replacement estimate includes costs to rebuild your home component by component. Current costs for labor, materials and contractor fees may influence the replacement cost of your house.
Some key factors that affect the cost of rebuilding a home:
We are an insurance company that cares. We help you get the coverage that meets your needs to help protect the things that are important to you, so you don’t have to worry.
It’s important to have a current estimate for your home’s replacement cost, one that reflects any significant improvements that you have made to the house. For example, if you installed a central air conditioner or finished your basement after you took out your insurance policy and never updated the replacement cost, your home might not be fully covered in the event that you need to completely rebuild following a covered loss.
Here are some steps that you can take:
Making sure that your home is insured to its full estimated replacement cost is another way to help protect your home and the things you’ve worked hard to build.
Learn more about our homeowners insurance products, or if you’re ready to take the next step, click here to get a quote or find an agent.
In 2014, criminals committed more than 8.2 million property crimes in the United States, of which nearly 21% were burglaries, according to the Federal Bureau of Investigation (FBI).
With those types of statistics, it is no wonder home security systems are on people's minds. But in a world where technology seems to evolve every month, home security systems have ventured into new territory: smart alarms.
What Is a Smart Alarm System?
As recently as 10 years ago, consumers did not have access to technology that let them manage their own home security systems. Smart alarm systems changed that. Originally, traditional security systems were hardwired into the home and monitored by a central station, usually a home alarm company. The customer paid monthly fees.
Fast forward and today, consumers have smartphones, home networks and wireless technology—all of which the smart alarm system can utilize. People can buy door sensors to detect if someone is outside or door locks that can be monitored and potentially controlled from one's cell phone.
In essence, smart alarm systems may be able to empower the customer to build their own network of security while retaining control, usually through their cell phones.
What Are the Benefits?More and more homeowners are installing their own smart alarm systems. The benefits are many, including:
What Are the Challenges?
One of the challenges smart alarm systems pose to the consumer is the risk of being hacked. Improper home network configurations, flaws in the devices or password compromise could allow a hacker to break into the system and determine if anyone is home, or even seize control.
Homeowners can take these three precautions to help prevent hackers from accessing their smart alarm systems:
Additionally, recognize that your entire system may not be designed to function during a power outage. To help ensure that your system continues to function during a power outage, if you do not have an automatically starting generator, consider employing sufficient battery back-up to power the Wi-Fi system, control panel and all the security monitoring equipment.
Consumer access to smart technology goes well beyond home security, enabling consumers to manage and monitor many aspects of home ownership, such as water-leak detection, loss of building heat, the ability to open or close garage doors remotely and the ability to turn on or off small appliances or lights.
Whatever technology you are planning to use to monitor or control aspects of your home, Travelers professionals emphasize reaching out to an organization or individual with expertise in smart home technology for help.