How much home insurance do you need?

How this calculator works

A homeowners policy is really five coverages stacked together. We anchor everything to Coverage A (dwelling) — the cost to rebuild your home — because the rest are conventionally set as a percentage of it:

• Dwelling (A) — your square footage × local rebuild cost per square foot.
• Other structures (B) — fences, detached garage, shed: typically 10% of A.
• Personal property (C) — your belongings: 50–70% of A (you pick).
• Loss of use (D) — living expenses if you're displaced: ~20% of A.
• Liability (E) — set to protect your net worth, rounded to a standard tier.
• Medical payments (F) — small guest-injury coverage, standard ~$5,000.

The big lever is rebuild cost per square foot. It varies by region, home style and finishes — $100–$150 is common for a standard build, $200+ for high-cost markets or custom construction. For a precise figure, ask a local builder or use your insurer's replacement-cost estimator, then come back and refine.

Common questions

How much dwelling coverage do I need?

Dwelling coverage (Coverage A) should equal the cost to rebuild your home from scratch at today’s local construction prices — not its market value and not what you paid. Multiply your square footage by a local rebuild cost per square foot (often $100–$200, higher in expensive markets or for custom builds). A local builder or your insurer’s replacement-cost estimator gives the most accurate figure.

Why is rebuild cost different from market value?

Market value includes your land, location and the housing market; rebuild cost is purely materials and labor to reconstruct the structure. In a hot market the home can be worth far more than it costs to rebuild; in some areas the reverse is true. Insurance covers the structure, so you size it to rebuild cost.

How much personal property and liability coverage should I carry?

Standard policies set personal property (Coverage C) at 50–70% of your dwelling amount; pick the higher end if you own a lot. For liability (Coverage E), a common floor is $300,000–$500,000, but you should carry at least enough to protect your net worth — that is what a lawsuit can reach. If your assets exceed your policy limit, an umbrella policy is usually cheap protection.

What is loss-of-use coverage?

Loss of use (Coverage D, also called additional living expenses) pays for hotels, meals and rent if a covered loss makes your home uninhabitable while it is repaired. It is typically set around 20–30% of your dwelling coverage.

Should I get replacement cost or actual cash value?

Replacement cost coverage pays to replace damaged property with new equivalents; actual cash value subtracts depreciation and pays much less. For both your dwelling and your belongings, replacement cost is strongly preferred even though the premium is slightly higher — actual cash value can leave a large gap exactly when you need the money.