Most homeowners are insured for their home's market value — not its rebuild cost. These are very different numbers. Calculate your true dwelling coverage need.
Critical distinction: Your homeowners policy should cover the cost to rebuild your home, not its market value. In expensive markets, the rebuild cost can be 20-40% less than market value. In areas with high construction costs, it can be more. This calculator estimates your rebuild cost.
🏠 Your Home
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📍 Location & Special Features
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$
Estimated Rebuild Cost (Recommended Coverage)
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Based on local construction costs for your home type
Cost Per Sq Ft
$0
Estimated rebuild rate
Your Current Coverage
$0
Existing policy
Coverage Gap
$0
Under or over insured
Market vs Rebuild
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Difference
Coverage Verdict
🏠Dwelling coverage adequacy—
🛋️Personal property (recommend 50-70% of dwelling)—
Get homeowners insurance quotes with the right dwelling amount. Being underinsured by even 20% can leave you with a massive out-of-pocket gap after a total loss.
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Frequently Asked Questions
Should my home insurance be based on market value or rebuild cost? ▾
Always rebuild cost. Market value includes the land (which can't burn down) and fluctuates with real estate markets. Rebuild cost is what it would actually cost to reconstruct your home from scratch using current materials and labor. In expensive markets like San Francisco or New York, rebuild cost can be 30-50% less than market value. In areas with high construction costs or older homes, rebuild cost can exceed market value.
What is replacement cost vs actual cash value coverage? ▾
Replacement cost coverage pays to rebuild or replace your home and belongings at current prices, with no deduction for depreciation. Actual cash value (ACV) pays the depreciated value — a 10-year-old roof may only get 30-40% of replacement cost under ACV. Always choose replacement cost coverage — the premium difference is typically small but the claims difference is enormous. Many policies automatically include replacement cost for the dwelling but default to ACV for personal property.
What does homeowners insurance NOT cover? ▾
Standard homeowners policies typically exclude: floods (requires separate NFIP or private flood policy), earthquakes (separate rider or policy needed), sewer backup (available as rider), landslides, normal wear and tear, pest damage, and certain dog breeds. In hurricane-prone areas, wind/hail may have a separate deductible. Review your declarations page carefully and consider riders for the most likely risks in your area.