That's why shoring up the replacement cost provision of your homeowners insurance policy should be on the top of your New Year's resolutions list. Market value, which includes the cost of land, is what a buyer will pay for your property. From there, market supply and buyer demand determines the final price.
Replacement value is much more complicated to figure.
That's because along with location and regional labor and material costs, you'll need the special services of demolition and debris removal experts. Figure Your Replacement Costs Complicated or not, it's up to you to be sure you've got enough insurance coverage. Consult with your local builder's association, trade group or union local for your local building costs per square foot. Multiply that by the total square footage of your house. Factor in your community's building codes, which require buildings to be constructed to minimum standards.