The Cost of Insurance When Building a House
Consider using a homeowners insurance online calculator
Building your dream house is an admirable task, but at the same time, it is very challenging.
It is a costly process that requires detailed planning and a tremendous amount of time.
Unless you are in the house building business, you will have many questions and concerns. For example, what kind of paperwork you have to obtain.
Home insurance calculator
Also, how much the house insurance will cost, or how much money, you need in total. Many variables can affect the construction cost. With that in mind, this overview is going to cover some of the crucial aspects that will help you calculate the cost of building a house.
To paint a picture and make this easy for you, we are going to analyze every step in detail. Hopefully, by the end of this guide, you will have some understanding of this topic. In return, you should be able to calculate the cost of building a house!
Moving a house vs.Building a house
The cost of moving a house differs from the cost of building one. If you have ever considered building your own place, and you can afford it, you should go for it. The first task on your list should be to hire a building cost estimator. He/she is an individual with a background education in the construction industry, whose sole responsibility is to quantify the labor, materials, and equipment needed to finish a construction project.
Many variables can affect the cost of building a house. For example:
- The lot you buy
- The size of the house
- The quality of materials
- Exterior and interior design
- The location of the house
It becomes clear why you need to ask for professional help when trying to calculate the cost of building a house. Besides, the total amount will change a few times, and it can cause a lot of stress. The whole process will be much easier with a professional building cost estimator. To illustrate this a bit better, let's look at this list in more detail.
A house lot
The most important aspect of building a house is to choose the best lot for it. The price mostly depends on the location. However, this is not the only thing that affects the cost. After you buy a lot, it may require additional leveling. Some building sites are hardly accessible, so it will cost more to make a clear path for construction workers.
Today, houses are commonly built in the planned communities. Each community has its own construction company, and this is a great way to find out more about the building cost estimate. However, if you decide to change your construction company, this might increase the total cost of building a house.
Building a house in a planned community is a smart choice
Also, you have to take into consideration the location of the lot. Find out in advance what the average price per square foot by zip code is. To further elaborate, each area has a median price for a home. The best way to get a ballpark estimate is to compare the cost of other houses in that neighborhood.
For instance, an average lot price in Tennessee varies between $75.000 and $95.000. However, it can go as low as $15.000 or sky high at $165.000. It paints a picture of how the price may change due to the location or footage. By the way, if you ever considered moving there, here are some great
Foundation related expenses may go from $30.000 and up. For example, excavation, retaining walls and such.
When trying to calculate the cost of building a house, you have to take into consideration how many levels you wish to construct. Multistory homes are much more expensive, and they can double the price at best! For instance, one of the reasons why multi-story homes are more expensive to build is obvious when trying to calculate homeowners insurance. We will talk more about this in the section to come.
The cost of windows and doors
It sounds unbelievable, but windows and doors are a major expense. For example, the installation of windows, doors, and garage doors for a single story house will cost you at least $12.000.
The price of home's siding
You have to be careful when
However, a lower-end option is vinyl siding. It goes as low as $4 per square foot, and it is the best choice for lower-priced homes.
Still, based on the findings in the past couple of years, one of the most popular choices is brick siding. With its popularity growing steadily, it is clear that it may be worth investing in brick siding, even when building lower-end homes.
Flooring and roofing
Hardwood flooring will cost you between $9 – $12 per square foot. If you like wall-to-wall carpeting, be ready to pay about $3 – $5 per square foot. An average price for the entire flooring is somewhere around $13.000.
For roofing for a newly built house, a realistic price is around $10.000.
Plumbing and electrical system
When you are trying to calculate the cost of building a house, do not forget about the plumbing and electrical system. The total cost will be around $20.000 - $25.000. At some point, you might start to wonder if buying a house is cheaper than building one, but it all depends on your wishes and expectations.
Home insurance estimate
It is a clever idea to learn more about home insurance. Factors that will affect the average cost of home insurance are the location and age of your home, the total value or high-risk factors, like dangerous dogs or pools. You can expect to pay around $3.50 for every $1,000 of your house value. There was an increase of almost 3% over the previous year, and we can safely conclude that the average cost of homeowners insurance sees an all-time high.
Calculate the cost of building a house like a pro
We gave you an insight into how to calculate the cost of building a house. Now you know what to expect. Also, think about the added expenses for buying appliances, electrical devices, and furniture. The average cost may vary between $300.000 and $500.000, but it all depends on the construction plans and the type of the house you wish to build.
Homeowners insurance online calculator
Don't forget to get the estimated cost of the home insurance premium when working on your budget. A homeowners insurance online calculator can make it simple to get a realistic estimate of what you'll expect to pay for home insurance.
If you want an accurate homeowners insurance quote click or call 314-569-1010 and speak with a licensed insurance broker today.