How Do I Calculate the Replacement Value of My Home for Insurance?

Key Points

• Replacement value = rebuild cost, not market sale price
• Use construction cost calculators — approx. $1,500–$4,000+ per sqm depending on state and build quality
• Include demolition and site clearing costs (often 10–15% of rebuild cost)
• Factor in council fees, architect costs, and any upgrades from the original build
• Review your sum insured annually — construction costs have risen significantly in recent years