We understand that the insurance policy provides coverage to replace the home with a like kind and size home. However we want to rebuild a home with larger interior square footage. How do we communicate this with the insurance company and would we need to pay all of the associated costs incurred from the square footage that is larger that the original square footage of 800 SF (square feet). For example if original home was 800 SF with 1200 SF of exterior decking. If new home to be built is 1200 SF would we have to pay 1/3 of the cost of construction since the replacement home would be 33% larger than the original home ? Or can the money be distributed by insurance company based on the Xactimate estimate with calculations made by building contractor of the cost of additional square footage?

About The Expert

Amy Bach

Amy Bach has been a professional advocate for insurance policyholders since 1984 and an attorney since 1989. She co-founded United Policyholders in 1991 and serves as the organization's Executive Director and primary spokesperson; shaping and overseeing the Roadmap to Recovery™, Roadmap to Preparedness, and Advocacy and Action programs. She is a nationally recognized expert on insurance claim and legal matters; frequently interviewed in print and broadcast media, and the author of numerous publications including "The Disaster Recovery Handbook", "WISE UP: The Savvy Consumer's Guide to Buying Insurance" and consumer tips and guides in the UP Claim Help Library.  Recognized by Money Magazine as a Money Hero, Bach is in her eighth consecutive term as an official consumer representative to the National Association of Insurance Commissioners, and is a member of the Federal Advisory Committee on Insurance.