Dwelling Coverage Calculator
Calculate the exact amount of dwelling coverage needed to rebuild your home from the ground up. Get accurate replacement cost estimates based on construction type, square footage, and special features.
How This Dwelling Coverage Calculator Works
Dwelling coverage is the most important part of your homeowners insurance - it pays to rebuild your home if it's destroyed. Market value ≠ Rebuild cost. This calculator estimates the TRUE cost to reconstruct your home.
What We Calculate
- Base Rebuild Cost: Square footage × construction cost per sq ft
- Construction Type: Wood, brick, stucco, vinyl siding adjustments
- Age Factor: Older homes (pre-1980) cost more to rebuild
- Regional Costs: High-cost areas (CA, NY, FL) vs lower-cost regions
- Special Features: Garage, finished basement, swimming pool additions
Construction Cost Ranges (2025)
Most common. Standard stick-built homes. Moderate cost.
Higher quality, more labor-intensive. Premium cost.
Common in Southwest. Above-average cost.
Budget-friendly option. Lowest rebuild cost.
Critical: Market Value ≠ Rebuild Cost
- • Your home's market value includes land (which doesn't need insurance)
- • Rebuild cost is often HIGHER in expensive areas (high labor/permit costs)
- • Never use market value as your dwelling coverage amount
- • Always choose guaranteed replacement cost or extended replacement (125-150%)
Frequently Asked Questions
What is dwelling coverage and why does it matter?
Dwelling coverage (Coverage A) is the part of homeowners insurance that pays to rebuild your home if it's destroyed by a covered peril (fire, windstorm, etc.). It's the foundation of your policy.
What it covers: Walls, roof, foundation, built-in appliances, attached structures (garage, deck)
What it doesn't cover: Land, detached structures (covered separately), personal belongings (covered by personal property), landscaping
Should I use replacement cost or market value for dwelling coverage?
ALWAYS use replacement cost, NEVER market value.
Here's why:
- Market value includes land: You don't need to insure land (it doesn't burn down)
- Rebuild cost can exceed market value: In expensive cities, labor/permits can cost more than home value
- Example: $400k home with $100k land = $300k structure. But rebuild might cost $350k due to labor/permits.
Best option: Guaranteed replacement cost coverage (rebuilds home regardless of cost) or extended replacement (125-150% of dwelling amount).
How much does it cost to rebuild a house in 2025?
Average rebuild costs per square foot (2025 estimates):
- • National average: $150-$200/sq ft
- • Basic construction: $125-$150/sq ft (vinyl siding, standard finishes)
- • Mid-range: $150-$200/sq ft (brick/stucco, upgraded fixtures)
- • High-end: $250-$400+/sq ft (custom features, luxury finishes)
- • Historic/unique homes: $300-$500+/sq ft (specialized craftsmanship)
Regional multipliers:
- • California, New York, Hawaii: +20-30% above national average
- • Texas, Midwest, Southeast: -10-15% below national average
What happens if I'm underinsured?
Being underinsured can be financially devastating:
- Total loss scenario: If your home is destroyed and rebuild costs $400k but you only have $300k coverage, you pay the $100k gap out-of-pocket
- Coinsurance penalty: Most policies have 80% coinsurance clause. If you're insured below 80% of rebuild cost, you pay a percentage of EVERY claim
- Example penalty: $300k rebuild cost requires $240k minimum coverage (80%). With only $200k coverage and $50k claim: Payout = $50k × ($200k/$240k) = $41,666. You lose $8,334.
Solution: Review dwelling coverage annually. Add guaranteed replacement cost or 125-150% extended replacement coverage for protection.
How do I update my dwelling coverage if costs increase?
Automatic options:
- Inflation guard endorsement: Automatically increases coverage by 2-4% annually to match construction cost inflation
- Guaranteed replacement cost: Rebuilds home regardless of coverage limit (best protection, higher premium)
- Extended replacement cost: Covers 125-150% of dwelling amount (good middle-ground option)
Manual updates:
- Review coverage annually during policy renewal
- Get professional appraisal after major renovations ($10k+ projects)
- Use this calculator yearly to verify your coverage is adequate