Real Estate

House insurance dwelling replacement cost

  • Last Updated:
  • Sep 3rd, 2021 9:44 pm
[OP]
Member
Jun 22, 2004
394 posts
38 upvotes
Toronto

House insurance dwelling replacement cost

Hi All,
I’m getting insurance quotes for my townhouse right now and the dwelling replacement cost is all over the place from $500k to $1.3mil causing the annual premium to range from $1100 to $2800. It’s a townhouse a little over 3000sqft in North York and mostly builder grade finishings.
I understand that replacement dwelling should not factor in land value and all other endorsements are mostly similar for each quote.

From experience approx how much $ per sqft is a reasonable replacement dwelling cost? Thanks!!
1 reply
Deal Addict
Jun 26, 2019
1956 posts
1689 upvotes
GTA
mc9180 wrote: It’s a townhouse a little over 3000sqft in North York and mostly builder grade finishings.

From experience approx how much $ per sqft is a reasonable replacement dwelling cost? Thanks!!
For standard builder grade finishes, which are pretty basic, if the whole row of towns were to burn down, a builder could likely come in and do it for $200-250/sqft. When we do newer townhomes with a shared garage below and a core slab, which makes it on the more expensive side, its usually around $200/sqft now a days or less. If just your unit needed to be built up from scrap, I would probably conservatively carry $300/sqft just do address you construction with general middle of the line finishes.

Then you have to replace contents, etc.

I do believe some policies will have a "replacement cost" which would be $900k, and then they have a total coverage amount, lets say $1.2mil in that case. With the later amount covering hotels, contents, etc.

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