How Much Does It Cost To Rebuild A House For Insurance Purposes. The sum that your insurance company will insure is based on the full rebuilding cost of the property. The main reason you need to know the cost to rebuild your home is for insurance purposes.
The rebuild cost is the amount it would cost to completely rebuild your home if it was destroyed beyond repair. And it's the latter amount that your insurer has to cover. It's key to have an accurate rebuild cost on a commercial property to avoid over insuring or under insuring—both of which can lose you money.