Typically, you want to insure your buildings for the cost to rebuild.
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. For example: fluctuations of the Canadian Dollar and varying material prices.
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%.
Another factor to consider when deciding how much to insure your building, 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.
Also, the extra cost associated with having to build in the winter. You may not be able to wait until summer to start rebuilding.
These two considerations can change the limit of coverage chosen by 20%. You can insure these added costs but you need to be made aware in order to make an informed decision.
Be sure to seek advice and purchase insurance from those who understand your business!