1. What Is Dwelling Coverage Calculation?

Dwelling coverage calculation determines the amount of insurance needed to rebuild your home in case of total loss. It's based on the square footage of your home and the local construction costs per square foot.

2. How Does The Calculator Work?

The calculator uses the dwelling coverage formula:

Where:

• \( Square\ Footage \) — Total livable area of your home (ft²)
• \( Cost\ per\ sq\ ft \) — Local construction cost per square foot ($/ft²)

Explanation: This calculation provides an estimate of the rebuilding cost, which is typically different from your home's market value.

3. Importance Of Accurate Dwelling Coverage

Details: Proper dwelling coverage ensures you have adequate insurance to rebuild your home after a covered loss without financial hardship. Underinsuring can leave you with significant out-of-pocket expenses.

4. Using The Calculator

Tips: Measure your home's total square footage (excluding garages and unfinished spaces). Research local construction costs, which vary by region and can range from $100-$400+ per square foot.

5. Frequently Asked Questions (FAQ)

Q1: Is dwelling coverage the same as market value?
A: No, dwelling coverage is based on rebuilding costs, which don't include land value and may differ significantly from market price.

Q2: What factors affect construction costs?
A: Local labor rates, material costs, home features (custom finishes, architectural style), and current building codes all impact rebuilding costs.

Q3: Should I include garage space?
A: Typically, only attached garages are included in dwelling coverage calculations, and often at a lower rate than living spaces.

Q4: How often should I update my dwelling coverage?
A: Annually, as construction costs tend to increase over time. Also update after major renovations or additions.

Q5: Does dwelling coverage include contents?
A: No, personal belongings are covered under separate personal property coverage. Dwelling coverage is specifically for the structure itself.