Reconstruction means any project where extensive renovations are being carried throughout the building that involve substantial rebuilding of the interior floor space that exposes the building’s structure.

Reconstruction may include repair, renovation, alteration or combination thereof.

When you are considering rebuilding you need to factor in the current costs for items such as lack of tradesmen, delays, difficulty in bringing in equipment for removal of debris and restoration. Reconstruction is usually far more expensive then the initial build cost. An example of reconstruction is building a vehicle one piece at a time versus the factory cost.

How do you make sure that you have reconstruction value? If it is your personal home then you have likely done some type of calculator which considers the type of construction, the size of your home and the extras built-in to give you an actual reconstruction cost. One of the factors usually built-in to this estimated value is debris removal. With the many plastics and potentially hazardous materials in a home, the debris removal can become quite expensive.

For your business you can hire an appraiser to give you a reconstruction value. There is also calculators that can be used to help determine an accurate reconstruction value.

Watch for the wordings "co-insurance" on your policy. You can be penalized in a claim if you fail to insure for the the accurate value of your building.