Estimating cover for building insurance

What's the best way to go about estimating cover for building insurance?

We bought average 3x1 home (607sqm land) in 2007 for $305 000. I think land value around then was $160k. We insured house for about $160k. Insurance keeps increasing the cost so it's now $194k.

I've used an online insurance estimator and it's come in at replacement cost about $290k to rebuild/replace. That seems extraordinarily high?

I've tried to find out what the land value might be now, but there's no vacant land there anymore. Do I just look at surrounding areas?

Are these estimates the best way to go? I know that replacement cost to rebuild is different to market value of home, but still, looking at similar houses that aren't selling for more than $310k, I'm reluctant to increase the amount.
 
What is included in the replacement cost? Demolition of the existing, consultant fees, council costs, alternative accommodation whilst rebuilding? Costs escalate quickly.
 
The land value shouldn't be a factor.

What you need to consider are;
-Total current market rate to construct a new house of the same/similar type from the ground up.
-Contents (this includes carpets/curtains/blinds possibly appliances etc)
-Demolition costs
-Landscaping, is it covered?
-Out buildings (garage/shed)
-Temporary accommodation

And probably a bunch of other stuff. It's important to be realistic about the costs to replace things these days. I'd over Insure a little but there's no point insuring for $1m when you only need $300k.
 
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