Reconstruction Cost

Reconstruction cost is the cost to replicate, at current prices, using like kind and quality materials, construction standards, design/layout, and quality of workmanship. Reconstruction costs also include a number of site-specific and process-related costs that are experienced when rebuilding after a loss. These additional expenses are related to repair/restoration contractors, construction process, time urgency, limited site mobility, adjoining non-construction areas, insured’s property, economies of scale, dangerous/hazardous materials, and mold concerns.