RCT

This is a worksheet most insurers use to determine reconstruction cost of the insured's dwelling. Different companies provide the forms and most insurance companies have agreed to accept these different forms. Another name commonly used is ITV - insurance to value.

Why is it important to complete one of these worksheets? The insurance answer is insurance companies insure for reconstruction cost which is quite different from the initial cost of building the home.

The information you supply regarding your dwelling includes, but is not limited to, the square footage, number of stories, type of floor coverings, number of bathrooms and fireplaces, and decks or porches.

The insurance company will grant Guaranteed Replacement Cost (GRC) for a homeowner policy if this information is provided. Different cost calculators are used for commercial or agricultural buildings.

If you do not have GRC then you may not have adequate rebuilding funds if you suffer a loss. The difference will have to come from your pocket and could cause undue financial hardship.