It is November, what if you experience a total loss that you always thought would never happen to you and now your property is burnt to the ground.
Without actual quotations from a Contractor or an Appraiser, you do not know with absolute certainty what the limit of coverage on your policy should be. Even with that done there are a lot of outside forces that affect replacement cost on a building, examples are the changing Canadian Dollar and varying lumber prices.
As you know, no two buildings are the same. Options chosen and quality of equipment alter the replacement cost greatly. Similar facilities can differ in replacement cost by more than 25% for example.
When you decide on the amount of insurance you need to be able to rebuild, do you allow for the costs of cleaning up the debris and for the extra cost of building in the winter?
Another factor to consider when deciding how much to insure your building for, is the clean up costs that need to take place prior to rebuilding. In today’s world of environmental considerations and government regulations these costs can be substantial.
Now, what about the extra cost associated with having to build in the winter. Remember it is November, you may not be able to wait for summer to come around to start rebuilding. We will experience a lot of cold weather before the spring like weather will be here. These two considerations can change the limit of coverage chosen by 20%. You can insure for these added costs but you need to be made aware of these issues in order to make an informed decision.
Be sure to seek advice and purchase insurance from those who understand your business!