Home Insurance Coverage Calculator
A homeowners policy is built from several coverage parts, and the most important one — dwelling coverage — should be based on what it costs to rebuildyour home, not its market price. This calculator estimates each standard coverage so you can check your policy isn’t leaving you underinsured.
How this calculator works
We start from the rebuild cost of your home and apply the standard policy structure (the “Coverage A–E” framework most insurers use):
- Coverage A — Dwelling: square footage × local rebuild cost per square foot. This is replacement cost, not the market/Zillow value (which includes land).
- Coverage B — Other structures (~10% of A): detached garage, fence, shed.
- Coverage C — Personal property (50–70% of A): your belongings.
- Coverage D — Loss of use (~20% of A): living expenses if your home is uninhabitable after a covered loss.
- Coverage E — Personal liability: a flat limit you choose (commonly $300k–$500k).
Why rebuild cost, not market value
Insuring to market value is a common, costly mistake. Market price includes land, which doesn’t burn down; in hot markets it can far exceed rebuild cost (over-insuring), and in others fall short (under-insuring). After a total loss you need enough to rebuild, so dwelling coverage should track construction cost. For an exact figure, insurers use a replacement-cost estimator — this is a sound ballpark.
Learn more
- Renters Insurance: Cheap Protection Most Renters Skip — Why renters insurance is one of the best dollar-for-dollar policies you can buy — what it covers, what it doesn't, and how to pick coverage amounts.
Frequently asked questions
- Should dwelling coverage equal my home's market value?
- No. It should equal the cost to rebuild your home, which excludes land. In many areas rebuild cost is lower than market price; in others it's higher. Insuring to market value commonly leads to paying for coverage you can't use, or being short after a loss.
- What rebuild cost per square foot should I use?
- It varies widely by region and home quality — often $100–$250/sq ft, higher for custom or high-cost areas. Your insurer or a local builder can give a precise figure; this calculator lets you test a range.
- How much liability coverage do I need?
- Enough to protect your assets if someone is injured on your property. $300k–$500k is common; if your net worth is higher, consider higher limits or an umbrella policy. Check your net worth to gauge what's at stake.
- Is this an insurance quote?
- No. It estimates how much coverage you likely need — not a price or an offer. We don't sell insurance or collect your information. Use the figures when comparing policies with a licensed agent.