Homeowners insurance, sized to the rebuild, not the price you paid.
The single most common mistake is insuring a house for its market value. Your policy needs to cover what it would cost to rebuild the structure from scratch (a different, usually higher number). Here is how to get Coverage A right and stack the rest on top of it.
Open the home calculator →What this is
A homeowners policy is really six coverages bundled together, and the whole thing hinges on one figure: Coverage A, the cost to rebuild your home. Market value includes your land and your neighborhood; rebuild cost is just materials and labor, and in many markets it is higher than the price on the deed. Get that number wrong and every other limit (contents, loss of use, even a partial claim under a coinsurance clause) is wrong with it. We do not sell policies, so here is the honest way to size each layer.
What homeowners insurance covers
Dwelling (Coverage A)
The cost to rebuild your home's structure after a total loss, the number everything else is priced from. Base it on local rebuild cost per square foot, not your purchase price or Zillow estimate. Underinsure it and a coinsurance clause can cut even a small claim.
Other structures (Coverage B)
Detached structures: a garage, fence, shed, or deck. Typically set at 10% of your dwelling limit, which is enough for most homes but worth raising if you have a large detached garage or outbuilding.
Personal property (Coverage C)
Everything inside: furniture, electronics, clothing, appliances. Usually 50–70% of the dwelling limit by default, but a real inventory can tell you whether that default is generous or short. Choose replacement cost, not actual cash value.
Loss of use (Coverage D)
Pays for a hotel, rentals, and extra living costs while your home is uninhabitable after a covered loss. Commonly 20% of the dwelling limit, meaningful money if a rebuild takes months.
Liability & medical (Coverage E & F)
Pays if someone is injured on your property or you damage others' property, plus their legal costs and small medical bills regardless of fault. Start at $300,000 and add a personal umbrella policy once your net worth outgrows it.
Free calculators
Run your own numbers: no account, no email, nothing stored. Every tool is open source and shows the method it uses.
Home Replacement Cost Calculator
Estimate your dwelling (Coverage A) rebuild cost from square footage and build quality, then see the Coverage B/C/D limits that stack on top of it.
Read next
Replacement cost vs. market value
Why insuring to the sale price leaves you underinsured, and how a coinsurance clause can shrink even a small claim.
What homeowners insurance does not cover
Flood, earthquake, sewer backup and the aging-roof settlement trap: the gaps that surprise people, and how to close them.
How much home liability + umbrella?
Size the coverage that protects your savings from a lawsuit, and know when an umbrella pays off.
Do you need flood insurance?
The gap every home policy leaves: who really needs a separate flood policy, even outside a high-risk zone.
The hidden hurricane deductible trap
Why your policy may have two deductibles, and how a percentage storm deductible dwarfs the flat one.
Does insurance cover roof replacement?
The ACV settlement trap: why an aging roof pays a depreciated fraction, and how to check your policy first.
Does home insurance cover water damage?
The sudden-vs-gradual rule, plus the flood and sewer-backup gaps that catch owners off guard.
Does home insurance cover dog bites?
Liability usually covers it, but breed exclusions, bite history, and limits can leave you exposed.
How we’re different
Most insurance sites exist to sell you a policy, so every page ends in “get a quote.” We are not licensed agents and we do not sell coverage, which frees us to say the unprofitable thing, including when to carry less:
- Insure the rebuild cost, not the market price: they are different numbers, and the gap is your land, which never burns down.
- Watch the coinsurance clause: insure below roughly 80% of rebuild cost and the insurer can reduce even a partial claim by the same proportion.
- Raising your deductible is the cleanest way to cut the premium; a separate, higher wind/hail or hurricane deductible often applies whether you asked for it or not.
Common questions
- How much homeowners insurance do I need?
- Enough dwelling coverage (Coverage A) to rebuild your home from scratch: local rebuild cost per square foot times your square footage, not your purchase price or market value. The other coverages are then set as percentages of that: other structures ~10%, contents 50–70%, loss of use ~20%.
- Why is rebuild cost different from market value?
- Market value includes your land and location, which do not need insuring. Land does not burn down. Rebuild cost is only the materials and labor to reconstruct the structure. In many markets rebuild cost is actually higher than market value, which is how homes end up underinsured.
- What is a coinsurance clause and why does it matter?
- Most policies require you to insure to at least ~80% of full rebuild cost. Fall below that and the insurer can pay a partial claim only in proportion, so underinsuring the dwelling can shrink even a small, everyday claim, not just a total loss.
- Replacement cost or actual cash value on my belongings?
- Replacement cost. It pays what a new equivalent item costs today; actual cash value subtracts depreciation and pays a fraction on anything a few years old. The premium difference is small relative to what you recover.
Run your numbers
See what the coverage math says for your situation: free, instant, and nothing stored.
Open the home calculator →Method: rebuild cost per square foot for Coverage A · standard Coverage B/C/D percentage stack · coinsurance 80% rule
Explore other insurance
Same approach, every line: real math, no sales pitch, and a straight answer on when to carry less.