Home Insurance Coverage Calculator

Frequently Asked Questions

How much dwelling coverage do I need?

Coverage A should equal full replacement cost (rebuild cost), not market value. Land doesn't burn. Use $150-$250 per square foot as a baseline; coastal and high-cost markets run $300-$500/sq ft per Verisk data. Reconstruction often costs more than original construction.

What does standard home insurance NOT cover?

Floods (need separate NFIP or private flood policy), earthquakes (separate policy), routine wear/maintenance, sewer backup (add endorsement), mold beyond limited amounts, and high-value items above sub-limits ($1,500-$2,500 typical for jewelry). Always read the exclusions section.

What is "extended replacement cost" and do I need it?

It pays 25-50% above your dwelling limit if rebuild costs exceed coverage - crucial after widespread disasters when material/labor costs spike. After the 2018 Camp Fire, 60%+ of homeowners were underinsured per United Policyholders surveys.

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This calculator provides estimates based on general assumptions. Actual insurance costs and coverage vary by insurer, location, and individual risk factors. Not a quote or binding offer. Contact insurance providers directly for accurate quotes and coverage options.

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How This Calculator Works

This calculator derives all four standard homeowners coverage limits from your home's replacement cost - not its market value. If you leave replacement cost blank it defaults to 1.2× market value. It then computes the policy-required minimum dwelling coverage at 80% of replacement cost and a recommended dwelling at 100%. Personal property is set at 70% of dwelling, loss-of-use at 20% of dwelling, and liability at a flat $500,000. The result is a complete coverage target you can take to any insurer.

Replacement Cost ≠ Market Value

This is the single biggest homeowners-insurance mistake. Market value includes land; insurance only rebuilds the structure. In hot markets a home may sell for $600,000 but cost $400,000 to rebuild - insuring to market wastes premium. In older neighborhoods the reverse is true: a home worth $250,000 may cost $400,000 to rebuild to current code. Always insure Coverage A to the cost to rebuild, materials and labor included.

The 80% Coinsurance Penalty

Most policies require dwelling coverage of at least 80% of replacement cost or they apply a coinsurance penalty to every claim, even partial ones.

Example: insure a $400,000 rebuild for only $280,000 (70%) and a $100,000 kitchen fire may pay roughly $87,500 minus deductible - you eat the difference.

Carrying 100% replacement cost (or adding an extended/guaranteed replacement cost endorsement) eliminates this risk after a regional rebuild-cost spike.

The Coverages People Under-Buy

Liability: the $500,000 default here is a floor. If your net worth exceeds it, add an umbrella policy - a lawsuit can reach assets, not just the home.

Personal property: standard coverage reimburses actual cash value (depreciated). Add a replacement-cost endorsement so a 10-year-old sofa is replaced new.

Scheduled items: jewelry, art, and firearms have low sub-limits ($1,500–$2,500). Schedule them separately or a stolen ring is barely covered.

Water/sewer backup and ordinance-or-law coverage are common gaps not in the base policy.

Keeping Coverage Current

Reconstruction costs rise with inflation and after major regional disasters when contractor demand spikes. Re-run this whenever you renovate, and add an inflation guard endorsement so limits track building costs automatically. Photograph or video every room for a personal-property inventory - at claim time the burden is on you to prove what you owned.

Home Insurance Coverage Calculator

Frequently Asked Questions

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