Homeowners coinsurance calculator
See how much a home insurance claim pays if your dwelling limit is below 80% of replacement cost. Check the coinsurance penalty before a loss happens.
Home rebuild cost calculator for dwelling coverage
Dwelling coverage should match what it costs to rebuild, not what your house would sell for. Enter your home's size and a local cost per square foot to estimate a sensible Coverage A limit.
Result
Showing the worked example. Change any number to see your own result.
$455,000Dwelling limit to discuss (rounded up)
Rebuilding this home would cost about $455,000, so a dwelling limit of around $455,000 is a sensible starting point. With your extended replacement cost endorsement, the policy could pay up to $568,750 if rebuilding costs more than expected.
- Estimated rebuild cost
- $455,000
- Dwelling limit to discuss (rounded up)
- $455,000
- Maximum with extended replacement cost
- $568,750
- Gap today
- $105,000
- Limit as % of rebuild cost
- 76.9%
- Rebuild cost
- Your limit
View chart data as a table
| Years from now | Rebuild cost | Your limit |
|---|---|---|
| 0 | $455,000 | $350,000 |
| 1 | $473,200 | $350,000 |
| 2 | $492,128 | $350,000 |
| 3 | $511,813 | $350,000 |
| 4 | $532,286 | $350,000 |
| 5 | $553,577 | $350,000 |
| 6 | $575,720 | $350,000 |
| 7 | $598,749 | $350,000 |
| 8 | $622,699 | $350,000 |
| 9 | $647,607 | $350,000 |
| 10 | $673,511 | $350,000 |
Rebuild cost and limit year by year
| Year | Rebuild cost | Your limit | Gap | Limit ÷ rebuild cost |
|---|---|---|---|---|
| 0 | $455,000 | $350,000 | $105,000 | 76.9% |
| 1 | $473,200 | $350,000 | $123,200 | 74% |
| 2 | $492,128 | $350,000 | $142,128 | 71.1% |
| 3 | $511,813 | $350,000 | $161,813 | 68.4% |
| 4 | $532,286 | $350,000 | $182,286 | 65.8% |
| 5 | $553,577 | $350,000 | $203,577 | 63.2% |
| 6 | $575,720 | $350,000 | $225,720 | 60.8% |
| 7 | $598,749 | $350,000 | $248,749 | 58.5% |
| 8 | $622,699 | $350,000 | $272,699 | 56.2% |
| 9 | $647,607 | $350,000 | $297,607 | 54% |
| 10 | $673,511 | $350,000 | $323,511 | 52% |
How the result is built
| Building cost (area × cost per sq ft) | $400,000 |
|---|---|
| Demolition, debris, permits, design | $40,000 |
| Code upgrades | $0 |
| Extras | $15,000 |
| Estimated rebuild cost | $455,000 |
| Dwelling limit to discuss (rounded up) | $455,000 |
| Maximum with extended replacement cost | $568,750 |
Compare scenarios
Save up to 3 versions of your inputs and compare them side by side.
How to use this calculator
- Enter your home's size. Use the finished living area in square feet from your appraisal or property records.
- Get a local cost per square foot. Ask a local builder or your insurer for a construction cost range for a home like yours.
- Add soft costs, code upgrades and extras. Keep the defaults or replace them with figures from a builder.
- Compare with your Coverage A. If your dwelling limit is well below the estimate, ask your insurer to rerun its replacement cost estimate.
Why rebuild cost, not market value
Dwelling coverage (Coverage A) pays to repair or rebuild your house. The right limit is what construction would cost, because the land under your home does not burn down. The Texas Department of Insurance points out that houses with higher replacement costs have higher premiums and that most insurers require you to insure at least 80% of replacement cost. Getting the rebuild number right protects you against both a total loss and a coinsurance penalty on a partial one.
This calculator builds the estimate from the pieces a builder would price: the building itself, the soft costs around it, code upgrades and extras.
How the calculation works
Building cost = square feet × local cost per square foot
Rebuild cost = building cost × (1 + soft cost % + code upgrade %) + extras
Limit to discuss = rebuild cost rounded up to the next $5,000
Maximum with endorsement = rebuild cost × (1 + extended replacement %)
The soft cost default of 10% is an assumption, not a published figure. Replace it with a builder’s estimate if you can.
Worked example
The calculator opens with this example: a 2,000-square-foot home, a local construction cost of $200 per square foot, 10% soft costs, no code upgrades, $15,000 for an attached garage and porch not in the per-foot price, and a 25% extended replacement cost endorsement.
| Line | Calculation | Amount |
|---|---|---|
| Building | 2,000 × $200 | $400,000 |
| Soft costs | 10% of $400,000 | $40,000 |
| Extras | Garage and porch | $15,000 |
| Rebuild cost | $455,000 | |
| Limit to discuss | Rounded up | $455,000 |
| With extended replacement cost | $455,000 × 125% | $568,750 |
If this owner carried $350,000 of dwelling coverage because that was the purchase price minus the land, they would be about $105,000 short of the rebuild estimate and close to the 80% threshold. The coinsurance calculator shows what that could cost on a partial claim.
Getting a realistic cost per square foot
| Source | Pros | Cons |
|---|---|---|
| Local builder | Knows current local labor and material prices | One opinion; ask two |
| Your insurer’s estimator | Uses detailed construction data | Only as good as the details entered |
| Professional appraisal | Most thorough | Costs money |
| National averages | Easy to find | Can be far off for your home and area |
Make sure your insurer’s estimate has the right details: square footage, number of stories, roof type, exterior walls, foundation, number of kitchens and bathrooms, and finish quality.
What changes the answer
- Finishes. Custom cabinets, stone counters and hardwood floors raise the per-foot cost.
- Older homes. Plaster walls, detailed trim and code upgrades can make rebuilding cost more than market value.
- After a disaster. Demand for labor and materials can push prices up quickly, which is what extended replacement cost is for.
- Detached structures. A detached garage or shed is usually covered under other structures, not the dwelling limit.
Common mistakes
| Mistake | Why it matters |
|---|---|
| Using the purchase price | Includes land; may not reflect construction cost |
| Forgetting soft costs | Demolition and permits are part of rebuilding |
| Not updating after renovating | The limit stays at the old value |
| Skipping ordinance or law cover on an older home | Code upgrades may not be paid otherwise |
Next steps
Compare the estimate with your Coverage A and ask your insurer to explain any big difference. Our guide to how much dwelling coverage you need covers the endorsements in detail, and the home and renters checker helps you size your personal property and liability too.
Questions people ask
How do I calculate the cost to rebuild my house?
Multiply your finished square footage by a local construction cost per square foot for a home of your quality, then add demolition, debris removal, permits, any code upgrades and features not included in the per-foot price.
Is rebuild cost the same as market value?
No. Market value includes land and location. Rebuild cost is only the cost of construction, which can be higher or lower than the sale price.
What cost per square foot should I use?
It depends on your area, the type of construction and finishes. A local builder or your insurer's estimator is the best source; national averages can be far off for your home.
What are soft costs in rebuilding?
Costs other than the building itself: tearing down what is left, hauling debris, permits, architect or engineering fees. They are easy to forget and can be significant.
What is extended replacement cost?
An endorsement that pays a set percentage above your dwelling limit, often 20% to 50%, if rebuilding costs more than expected, for example after a regional disaster.
Do I need ordinance or law coverage?
If your home is older, likely yes. It pays the extra cost of rebuilding to current building codes, which standard dwelling coverage may not include.
How often should I update my rebuild cost?
At each renewal and after any renovation or addition. Construction costs change, so a figure from a few years ago may be too low now.
Sources
- Home insurance guide — Texas Department of Insurance, accessed
- Homeowners Insurance — National Association of Insurance Commissioners (NAIC), accessed
Educational information, not insurance, legal or financial advice. Coverlee does not sell insurance. How we calculate
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