Homeowners insurance dwelling coverage should be sized to what it costs to rebuild the home, not what it would sell for — the two numbers can differ substantially.
How it works
Square footage multiplied by a local rebuild cost per square foot, plus any additional features not captured in a flat per-square-foot rate, gives an estimated replacement cost.
Why rebuild cost, not market value
Market value includes land, which doesn’t need rebuilding after most claims, and moves with the local real estate market rather than construction costs specifically — insuring to market value can leave a home significantly underinsured, or overpaying for coverage on land value that was never at risk.
How to use this calculator
- Enter square footage and a local rebuild cost per square foot.
- Add any additional features not reflected in the base rate.
Frequently asked questions
Where do I find the local rebuild cost per square foot?
A local contractor estimate, or an insurer’s own replacement-cost estimator tool, is more reliable than a single national average, since construction costs vary significantly by region.
Does this account for detached structures like a garage or shed?
No — those are usually covered under a separate coverage limit on a homeowners policy, not included in the main dwelling estimate here.
