Knowing your RCE will help you set the right Dwelling Coverage limits on your homeowners insurance, which will help you in the worst case scenario that you do need to rebuild your home from scratch.
For example, let’s say your home has a RCE of $240,000 but you selected a limit of $200,000 in Coverage A on your homeowners insurance. If your home is destroyed after a covered peril like a windstorm or fire, you’d have to foot the remaining $40,000 bill yourself. To avoid that scenario, simply ensure that the Dwelling Coverage you choose is equal to or greater than your RCE.