How Much Does It Cost To Rebuild A House For Insurance Purposes. Multiply that by your home's square footage to get an approximate rebuilding cost for your home. The rebuild cost is the amount it would cost to completely rebuild your home if it was destroyed beyond repair.
This is different from your home’s market value, as this is based on other factors such as location. For example, you may be able to sell it for $500,000, but it may only cost $250,000 to rebuild. The main reason you need to know the cost to rebuild your home is for insurance purposes.