Insurance companies use replacement cost to set your dwelling coverage — not your home's market value. Calculate the true cost to rebuild so you're never caught underinsured.
Why rebuild cost matters: After a total loss, your insurance pays the rebuild cost — not what you paid for the home, not what you could sell it for. If your policy limit is lower than the rebuild cost, you pay the difference out of pocket. This calculator uses construction industry cost data to estimate your true replacement cost.
🏠 Home Specifications
sqft
sqft
📍 Location & Additional Structures
sqft
$
Estimated Total Rebuild Cost
$0
This is the minimum dwelling coverage you need
Main Structure
$0
House rebuild cost
Garage Cost
$0
Attached garage rebuild
Additional Structures
$0
Deck, pool, other
Cost Per Sq Ft
$0
Blended rebuild rate
Make sure your policy matches your rebuild cost
Compare homeowners insurance quotes with the correct dwelling coverage amount. Underinsurance is a silent risk most homeowners don't discover until it's too late.
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Frequently Asked Questions
Why is rebuild cost different from market value? ▾
Market value reflects supply and demand for the land and the home's location — it includes the land value (which can't be destroyed), neighborhood premiums, and real estate market conditions. Rebuild cost only includes the actual cost of labor and materials to reconstruct the physical structure. In hot markets, land value can represent 30-50% of total market value — your insurer doesn't need to replace the land, only the building.
What is extended replacement cost coverage? ▾
Extended replacement cost coverage pays a percentage above your policy limit (typically 20-50% more) if rebuild costs exceed your coverage due to increased construction prices or labor shortages after a widespread disaster. It's relatively inexpensive to add and provides a crucial buffer. After major disasters, construction costs spike 20-40% due to contractor demand — standard coverage leaves you paying the difference.
How often should I update my dwelling coverage? ▾
Review your coverage annually or after any significant renovation. Construction costs have increased dramatically — 40%+ since 2019. Many policies auto-adjust with an inflation guard rider (typically 4-8% annual increase), but this may not keep pace with actual construction inflation. Get a replacement cost appraisal every 3-5 years for accurate coverage, especially after major improvements.