Dwelling Coverage Calculator

What Is Dwelling Coverage?

Dwelling coverage (also called Coverage A) is the part of your homeowners insurance policy that pays to rebuild or repair the physical structure of your home if it's damaged or destroyed by a covered event — like fire, windstorm, hail, or lightning.

It does not cover the land your home sits on. It only covers the cost to rebuild the structure itself, including walls, roof, floors, built-in appliances, and attached structures like a garage.

Market Value vs. Rebuild Cost: A Critical Difference

The most common mistake homeowners make is insuring their home for its market value instead of its rebuild cost. These are very different numbers.

• Market value includes the land and is influenced by location, school districts, and neighborhood demand
• Rebuild cost is purely what it would cost to reconstruct the physical structure using current labor and materials

In expensive markets like San Francisco or New York, the market value can be 2–3x the rebuild cost. In rural areas, the rebuild cost might actually exceed market value. Always base your dwelling coverage on rebuild cost — not what you paid for the home or what it would sell for today.

What Else Does Home Insurance Cover?

A standard homeowners policy includes several coverage types beyond dwelling:

• Other structures (Coverage B) — Detached garage, fence, shed — typically 10% of dwelling coverage
• Personal property (Coverage C) — Your belongings inside — typically 50–70% of dwelling coverage
• Loss of use (Coverage D) — Temporary housing while your home is repaired — typically 20% of dwelling coverage
• Liability (Coverage E) — Protects you if someone is injured on your property — typically $100,000–$300,000
• Medical payments (Coverage F) — Minor injuries to guests, regardless of fault — typically $1,000–$5,000

Tips to Make Sure You're Not Underinsured

• Ask your insurer for a replacement cost estimator — most use a tool that calculates rebuild cost based on your home's details
• Review your coverage annually — construction costs change, and your coverage should keep pace
• Consider an inflation guard endorsement — automatically adjusts your coverage limit annually based on construction cost inflation
• Add extended replacement cost coverage — pays 20–50% above your limit if rebuild costs exceed your coverage amount
• Document your home's features — photos and a home inventory help support claims and ensure accurate coverage calculations

Frequently Asked Questions

Should dwelling coverage be based on market value or rebuild cost?

Rebuild cost, not market value. In expensive markets like San Francisco or New York, market value can be 2–3x the rebuild cost — using market value would leave you significantly overinsured or underinsured depending on the market.

What's the difference between dwelling coverage and personal property coverage?

Dwelling coverage (Coverage A) pays to rebuild the physical structure. Personal property coverage (Coverage C) covers your belongings inside, typically set at 50–70% of your dwelling limit automatically.

What is an inflation guard endorsement?

An add-on that automatically adjusts your dwelling coverage limit each year based on construction cost inflation, so your coverage doesn't fall behind rising rebuild costs.

Is extended replacement cost coverage worth adding?

Often yes. It pays an additional 20–50% above your dwelling limit if rebuild costs exceed your coverage amount, which matters most after a major regional disaster when costs surge.

Does dwelling coverage include a detached garage or shed?

Attached structures are included in dwelling coverage. Detached structures fall under Other Structures coverage (Coverage B), typically 10% of your dwelling coverage limit.