03/16/2026
Your house is one of your most valuable financial assets. That’s why homeowners without enough insurance can face financial ruin when disaster strikes and they find themselves suddenly homeless and unable to rebuild.
“People are surprised to find out that what they’ve been paying for isn’t enough to rebuild their home after a major loss.”
For example, a stunning 74% of those who filed insurance claims after the Marshall Fire, a costly wildfire that swept through the Boulder suburbs in December 2021, didn’t have enough homeowners insurance to fully replace their home. In fact, researchers at the University of Colorado found these homeowners were under-insured by an average of $139,000. ...many homeowners buy the amount of coverage their insurer suggests, which often isn’t enough. With rebuilding costs on the rise, most people who lost their homes in the Marshall Fire had not begun to rebuild more than a year later. While building materials and labor are the foundation of rebuilding costs, those prices fluctuate for a few reasons.
Inflation is always nipping at our financial heels. Price indexes from the Bureau of Labor and Statistics show building materials were up 3.5% in 2025. Rebuilding costs also aren’t identical to what you’d spend to build a brand-new home. Reconstructing a damaged house often includes some extra steps like cleanup, demolition, site preparation and dealing with hazardous materials.
The median cost to rebuild a home in the U.S. is about $280 per square foot, according to NerdWallet’s analysis of 2025 data provided by First Street, a climate risk financial modeling firm.
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news shared by Carolyn Burns, Broker-assoc., Realtor in Ft. Lauderdale, FL
Knowing how much it would cost to rebuild your home is crucial.