Nobody wants to think about losing their home to a disaster like a fire, flood or other catastrophic event. It is extremely traumatic to lose a home and have to deal with the aftermath of this tragedy.

Knowing that you have insurance cover to have your home rebuilt reduces the stress a little. It is important, though, to make sure that the cover you have is sufficient to cover the rebuilding costs. Your insurance representative should be able to help you work out the correct insurance value for your home. Make sure you take out enough insurance to cover all the costs should the need arise.

Don’t make the mistake of thinking that the cost of rebuilding a home is the same as buying another home of the same size and style in the same neighborhood. It costs a lot more to rebuild, for several reasons:

• Any parts of the structure that remain standing will probably need to be demolished. This will require equipment and labor.
• All rubble and other debris will need to be cleared up, removed from the site and correctly disposed of.
• Any damage to utilities equipment, like plumbing, drainage, electrical supply, septic tanks and sewage lines will need to be repaired.
• The ground may need some rehabilitation and landscaping to make it suitable for building on.
• If the home is to be rebuilt to the plans and specifications of the original structure, this may require a lot of detailed work and skill.
• In the case of older homes, some fittings and equipment used in the original building may no longer be available or, if they are available, may be fairly expensive.