The cost to rebuild a house is a central factor in determining an insurance policy's premium, reports CoreLogic's Susan Williams.

Current localized costs of labor and building materials are applied to create a cost estimate that is unique to the specific home at the time of the estimate. This produces objective estimates without the inaccuracies that are introduced by subjective quality judgments or unsophisticated estimating tools.

The process of determining the value has gotten much easier with technology.

In the past decade, the estimating process that an agent, call center or on-line tool used has progressed from requiring the home owner to provide all of the details about the home to incorporating online data resources that pre-fill information about the home.

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