Homeowners Insurance Calculator

Calculator Total Dwelling Coverage

The home insurance calculator will calculate your dwelling coverage so you know what type of home insurance coverage you need to cover your replacement cost.

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What is Dwelling Coverage and How Much Should I Carry?

Dwelling coverage is a major component of a homeowners policy. It pays to repair or rebuild the structure of your home in the event it is damaged or destroyed by a covered peril such as wind, hail or fire.

You should always carry enough dwelling coverage to rebuild your home in the event it is destroyed by a covered peril. The rebuild price of a home is not the same as the market value of your house. In some cases the cost to rebuild is actually higher than the market value, but in most situations, the rebuild cost is lower than the market value of your home.

It is extremely important to get the dwelling coverage amount right to avoid being over insured or even worse, underinsured. Check out this article for everything you need to know about replacement value and homeowners insurance.

How Do I Calculate How Much Dwelling Coverage I Need?

Your insurance agent will help you decide how much coverage you should be carrying but if you want to double check their numbers, or just get a quick estimate, we can help.

Our Home Insurance Calculator will quickly give you an estimate of how much dwelling coverage you should carry to fully protect your home. Simply enter your zip code and the square footage of your home, click the calculate button and we will give you an estimate of your replacement cost.

Why Do You Need My Zip Code?

Our calculator pulls the average building cost in your area to calculate your rebuilding costs. Average building costs can vary greatly across the country and to get the most accurate estimate we need your zip code.

According to the National Association of Home Builders (NAHB), in September 2017, the average cost per square foot to build a home was $85.65. However, this number can vary dramatically depending on where you call home.

Why Do You Need The Square Footage of My Home?

We take the average building cost in your area and multiply it by the square footage of your home to get a replacement cost estimate. The land that your home sits on will often make up a major portion of your home’s market value but the land is still there even if your home is destroyed.

We Will Provide Three Estimates

Just using the local building costs will give you a rough estimate but if your home has been upgraded or is chock full of custom upgrades, your rebuild cost will be much higher which is why we give you three estimates.

  1. First Estimate: If your home has fairly standard features and you have not done any upgrades, this is most likely the most accurate number to use.
  2. Second Estimate: Use this number if you have done some upgrades to your home. As an example, if you have upgraded countertops such as granite or quartz or have installed hardwood or custom flooring this estimate is the best number to use.
  3. Third Estimate: If you are living in a custom built home or have done major upgrades to your home, use this number. This estimate should also be used if you live in a vintage home that is filled with expensive features such as plaster walls, hand carved wood and stained glass windows. Older homes are often more expensive to rebuild due to the unique and expensive to replicate features.

What Else is Protected by Dwelling Coverage?

Getting the dwelling coverage number right is important not only to make sure your home is properly protect but also any outbuildings on your property as well as your personal possessions.

The dwelling coverage number is tied to the amount of coverage you have for other structures on your property, loss of use as well as your personal possessions so if the dwelling coverage number is wrong you may be underinsured on other structures and your personal possessions.

Other Structures: This refers to outbuildings, sheds, detached garages and any other structures you may have on your property. This coverage is usually capped at 10 percent of your dwelling coverage levels. As an example, if your dwelling coverage number is $300,000 your other structures coverage is $30,000.

Loss of Use: This coverage will pay for hotel, restaurant, dry cleaning and other bills that you incur if your house is so damaged that it is unlivable. This is coverage is usually capped at 20 percent of your dwelling coverage limits.

Personal Possessions: All of your personal possessions fall into this coverage and this number is also tied to your dwelling coverage number. The ratio can vary between insurers but in most cases it is 50% to 70% of your dwelling coverage. This means that if you are carrying $300,000 in dwelling coverage you have $150,000 to $210,000 to replace your personal possessions.

It should be noted that the majority of homeowner policies put a separate cap on high-value personal property such as jewelry, collectibles, artwork, and furs. The cap will vary by insurer but $1,500 is a common limit. In order to fully protect your high-value personal property you may need to add a rider to your policy.

These examples make it clear why it is so important to get the dwelling coverage limit correct. If you are underinsured on your dwelling coverage, you may also end up underinsured on your possessions and other structures coverage.

Hopefully, you now have a clear understanding of what dwelling coverage is and why it is important to get that number correct. Check out our free calculator now to get a dwelling coverage estimate for your home.