Why is the value of my house (Coverage A) on my homeowners insurance different than the market value?

The market value of your home and the cost to rebuild are often different.

Dwelling coverage, sometimes referred to as Coverage A, on your homeowners insurance is the cost associated with rebuilding or repairing the physical structure of your home from scratch in the event of a total loss.

Market values fluctuate depending on many factors. But the costs of building material and labor in home construction are less volatile.

Coverage A will cover the costs to make your home whole again, or as close as possible to what it was before the event.

For example, in the event of a fire, this coverage will be used to pay for:

  • clearing any debris left over from the damage
  • construction and work permits
  • redrawing architecture and construction plans
  • all building materials such as wood, sheetrock, nails, wiring, pipes, shingles, etc.

How is Dwelling Coverage calculated?

Dwelling coverage is typically calculated around $200-300 per square foot, depending on:

  • the type of home you have
  • the quality of materials used when the home was built
  • any customizations of the home
  • any upgrades or modernizations you may have completed 

Calculating dwelling coverage is a simple process. All it takes is a quick and efficient phone call to figure out.

Not sure if your home is properly insured?

Call or email us today. We can review your entire policy and find any gaps in coverage.