Methodology
By Severance Calculator Editorial · Updated
Data sources
This pipeline aggregates eight public data sources. Refresh cadence ranges from monthly (BLS PPI inflation, Census BPS permit valuations) to biennial (NAHB cost study, ICC Building Valuation Data).
| Source | Use | Refresh | Access |
|---|---|---|---|
| NAHB Cost of Constructing a Home (2024) | Regional $/sqft baseline (9 Census divisions) | Biennial | Public PDF |
| US Census Bureau SOC / CHARS | National median annual cross-validation | Annual (June) | HTML + CSV |
| BLS PPI WPUIP2311001 + WPUIP2311102 via FRED | Monthly inflation adjustment | Monthly (automated) | Free API |
| US Census Bureau Building Permits Survey | Metro-level cost modifier (380+ MSAs) | Monthly (automated) | Free API |
| BLS QCEW NAICS-23 wages | Metro modifier cross-validator | Annual (automated) | Free API |
| ICC Building Valuation Data | Construction-type cost ratios (frame/masonry/log/etc.) | Biennial cross-check vs. NAHB + state DOI | Public PDF |
| FEMA NFIP Risk Rating 2.0 state profiles | Sanity-ceiling cross-check | Ad hoc (FEMA updates) | Public PDFs |
| HUD 24 CFR §891 high-cost uplifts | AK / HI / Guam +50% | Annual | Public PDF |
Sample calculation
A 2,000 sqft frame standard-quality home in Boston, May 2026:
- NAHB New England median: $190/sqft
- Quality multiplier (standard): 1.00
- Construction type (frame): 1.00
- Metro modifier (Boston via Census BPS): ~1.00
- BLS PPI inflation factor: 1.0852 (2024-01 → 2026-04)
- Typical: $190 × 1.00 × 1.00 × 1.00 × 1.0852 × 2,000 ≈ $412,376
- Band width: ±12% (easy case)
Accuracy disclosure
Validation against published carrier-tool estimates (NerdWallet, Bankrate, MoneyGeek) shows this pipeline lands within ±10–18% of competitor outputs. The site biases conservatively high to hedge against underinsurance, which is the asymmetric harm in homeowners insurance. The displayed range (low / typical / high) reflects input uncertainty: ±12% for easy cases (standard quality, frame construction, post-2000 build), ±15% for typical cases, ±20% for hard cases (custom/luxury, log/manufactured, or pre-1940 builds).
Why we range, not point-estimate
A single replacement-cost number creates a false sense of precision. Carrier estimating tools (Xactware, CoreLogic 360Value, RSMeans) frequently diverge from each other by 15–25% on the same property. Showing a range honestly reflects this and helps the user calibrate their conversation with a licensed agent or appraiser.
What this calculator is not
Not a licensed insurance agent, broker, appraiser, or adjuster. Not legal or financial advice. Not a substitute for a formal replacement-cost appraisal. For coverage decisions, work with a licensed professional in your state.
Corrections + contact
Email hello@rebuildcostcalc.com. Corrections published with dated changelog entries.