Effect of property slope and site access on replacement cost estimates

July 1, 2014 / 1 min read

Do your replacement cost estimates account for property slope and site access? According to a recent analysis of several million replacement cost estimates, the answer is probably not.

The analysis found that users entered property slope for only 1 percent of all estimates and site access for only 0.2 percent of estimates. While system assumptions can provide a best guess for those fields, there’s no substitute for actual information.

In fact, property slope and site access can have a significant effect on the replacement cost estimate. On average, properties built on a steep slope cost 12 percent more to replace than properties built on land with no slope. Properties built on an island with only ferry access cost 16 percent more to replace than properties built on the mainland.

To see how property slope and site access may affect the coverage limits on properties you insure, contact us to schedule an analysis.