Replacement Value For Home Insurance

Question Icon
Posted by: from Cambridge
12/4/2011 at 1:25:44 AM

I have a 2 story 1800sq/ft house with partially finished basement(no bathroom, kitchen, bar) and was told by my insurance provider that they calculate replacement value of my house at $135 sq/ft and the basement is included at this rate.

My questions is should the basement be included in the cost? I know basements usually cost between $30 and $50 sq\ft to finish. What do you think the replacement value on a 1800sq/ft house should be?

User Icon
Date/Time12/4/2011 at 9:24:28 AM

Hi Kevin:

It is true that the foundation of a home is included in the main or FINISHED legal living floor square footage. A walk-out basement is counted as saleable square footage. However, a basement is generally not, for they are usually considered to be holding up the living area of the home.

You should be able to get extra insurance on a finished basement. You are right that it will be calculated at a much lower rate. Your improvements, as long as they contribute to the home's value, should be able to be insured.

To find out this value, ask a real estate agent what the difference is in sale value of a non finished basement vs a finished basement. Also, a qualified home appraiser could give you the difference, and his expert opinion will give you an accurate, unbiased value for your improvements.

Search the TrustedPros directory and discover the best contractors in your area.

Find your home service pro
Great renovations start with a great contractor.

Since 2004, TrustedPros has been helping homeowners find the right contractor for their home improvements and repairs.

Post Your Project

Within hours you'll be comparing offers from top-rated professionals. It's free to post and you're under no obligation to hire.

Trustedpros Inc. does not warrant the accuracy, completeness, safety, legality or usefulness of any Content, or Whether Content is Current and up-to-date, and TrustedPros Inc. Shall have no liability whatsoever with respect to your use or reliance upon any content or for content being removed or otherwise ceasing to be available. Please refer to the terms and conditions of use of this websites for more details.

It appears you may be located in the US

TrustedPros is designed to deliver results targeted to your location.

Get Free Estimates

Post your project and compare offers from top-rated pros.