Over the years I've found that the replacement cost that insurance companies use is often high. Many, many times I've seen the name of Marshall & Swift as the third part construction manual / calculations that are used for RC.
I normally work P&C construction so I have construction clients. I called one today to ask what the sq ft cost is for residential building in my area. He said $125 is a starting point, I was thinking $150.
Anyhow the reason this is brought up is that there is a HO client that wanted me to shop around. I found a well known company that would be about $700 a year less for AO and HO combined. So as usual to nail down the premium I sent in the cost estimator sheet. Currently the dwelling is $324,000 --- the RC from Marshall came back at $495,000.
I called an appraiser I know and he sent me to an appraisers website. On that site I found an online building estimator that I've used in the past and I found a new one.
The one estimator is --
New Home Construction Cost Calculator
The other is (one I've used in the past)
Building-Cost.net -- free residential building cost calculator
The numbers used in the above calculator are from the National Building Cost Manual, published by Craftsman Book Company.
When I input the information both calculators they come back with lower figures.
I think that M&S figures are padded for RC so that the insurance companies get a lot of wiggle room. Any thoughts???????????
Alternative To Marshall & Swift Res. Cost Handbook-Page 4 - General Appraisal Discussion - Appraisers Forum
I normally work P&C construction so I have construction clients. I called one today to ask what the sq ft cost is for residential building in my area. He said $125 is a starting point, I was thinking $150.
Anyhow the reason this is brought up is that there is a HO client that wanted me to shop around. I found a well known company that would be about $700 a year less for AO and HO combined. So as usual to nail down the premium I sent in the cost estimator sheet. Currently the dwelling is $324,000 --- the RC from Marshall came back at $495,000.
I called an appraiser I know and he sent me to an appraisers website. On that site I found an online building estimator that I've used in the past and I found a new one.
The one estimator is --
New Home Construction Cost Calculator
The other is (one I've used in the past)
Building-Cost.net -- free residential building cost calculator
The numbers used in the above calculator are from the National Building Cost Manual, published by Craftsman Book Company.
When I input the information both calculators they come back with lower figures.
I think that M&S figures are padded for RC so that the insurance companies get a lot of wiggle room. Any thoughts???????????
Alternative To Marshall & Swift Res. Cost Handbook-Page 4 - General Appraisal Discussion - Appraisers Forum