How to Calculate Insurance for Buildings
- 1). Determine the replacement cost for your building by multiplying the average reconstruction cost per square foot by the combined total square footage for all floors in your building. Reconstruction cost per square foot varies by location and type of building, so the easiest way to determine this is to hire a surveyor or reconstruction cost appraiser. You are interested in replacement cost, not market value.
- 2). Determine the value of insurable items within the building. For your home, this will be your personal belongings. For a restaurant, it will include equipment and inventory. For office buildings, calculate furniture and tenant improvements, if applicable.
- 3). Provide this information to your insurance agent or broker, as well as any other information he requests. He will create an insurance quote for your building.
Source...