Property Insurance replacement cost estimates for 2023
by Andy Shafer
In a previous week’s blog we mentioned the cost of building, speaking on how much the cost has risen in the last several years. Recently, we researched the cost per-square-foot for multiple types of structures that are common to our area. Please keep in mind, we are not builders or architects. If you would like a truer replacement cost estimate for your building, it is best to contact a qualified appraiser or builder. Here’s what we found out in discussions with a group of our customers that build these type structures on the residential side.
- A starter home, generally thought of less than $400,000 purchase price, would be $150.00 per square-foot range for replacement cost.
- A mid-range home, which is typically $600,000-$800,000 in purchase price, would be $200.00+ per square-foot range for replacement cost.
- A higher end home, which is generally thought of as $1,000,000-$2,000,000, would be $225+ per square-foot range for replacement cost.
- A high-net worth home, which is $2,000,000+ (sky is the limit!), begins at a minimum of $350.00 per square-foot for replacement cost.
- The shell of an industrial warehouse, meaning no finish out, is going to start at a minimum of $75 per square-foot for replacement cost.
- A multi-story office building, with average finishes, is going to be about $230 per square-foot for replacement cost.
- A multi-story Class A, with all the nice amenities, is going to begin at approximately $300.00+ per square-foot for replacement cost.
- A new strip-mall-center, say for a Publix or Target, is going to start at $100 at minimum per square-foot for replacement cost.
We did a little research, found that there were seven houses that completely burned to the ground in Knox County in the past year. That doesn’t include commercial buildings or apartment complexes. According Rural Metro, that is a 10% increase from the average.
Again, these are just benchmarks, but should give you a good idea of how the insurance industry is evaluating property. Plus, we want to make sure you are properly insured.