How this calculator works
Dwelling coverage should match the cost to rebuild, square footage times local rebuild cost per square foot, not the home's market value. Other structures, personal property and loss of use are commonly set as percentages of the dwelling amount.
Worked example
With the example values below: Dwelling coverage, $400,000 (rebuild cost, not market value). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Home size (sq ft) | 2,000 |
| Rebuild cost per sq ftAsk a local builder or your insurer | $200 |
| Other structures | 10% |
| Personal property | 50% |
| Loss of use | 20% |
| Liability limit | $300,000 |
The parts of a homeowners policy
| Coverage | What it covers | Typical amount |
|---|---|---|
| A. Dwelling | The structure of your home | Full cost to rebuild |
| B. Other structures | Garage, fence, shed | About 10% of dwelling |
| C. Personal property | Belongings | 50% to 70% of dwelling |
| D. Loss of use | Living costs while displaced | 20% to 30% of dwelling |
| E. Liability | Injuries and damage you cause | $300,000 to $500,000 |
| F. Medical payments | Guests' minor injuries | $1,000 to $5,000 |
Replacement cost vs. market value
Insure the dwelling for the cost to rebuild, not what the house would sell for. Market value includes land, which doesn't need rebuilding, while construction costs can exceed market value in some areas. Extended or guaranteed replacement cost endorsements add a cushion if rebuilding costs spike after a disaster.
For belongings, replacement cost coverage pays to buy new items; actual cash value subtracts depreciation and pays much less.
What standard policies exclude
Insurance costs feed into the mortgage calculator and the cost of owning a home calculator.
- Floods: need separate flood insurance through the NFIP or a private insurer.
- Earthquakes: need a separate policy or endorsement.
- Wear and tear, pests and maintenance problems.
- High-value items above sub-limits, such as jewelry, unless scheduled.
Frequently asked questions
How much homeowners insurance do I need?
Dwelling coverage equal to the full cost to rebuild your home, personal property coverage for your belongings (often 50% to 70% of dwelling), and liability coverage of at least $300,000.
Should I insure my home for market value or replacement cost?
Replacement cost. Market value includes land and local market conditions, while insurance needs to cover rebuilding the structure.
Does homeowners insurance cover floods?
No. Flood damage needs a separate flood policy from the National Flood Insurance Program or a private insurer.
How much does homeowners insurance cost?
Often around $1,500 to $3,000 a year, much higher in areas with hurricane, wildfire or hail risk. Your home's rebuild cost, location, deductible and claims history all matter.
What is loss of use coverage?
It pays extra living expenses, such as a rental or hotel, if your home is unlivable after a covered loss. It's usually 20% to 30% of dwelling coverage.
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Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.