Dwelling Coverage Calculator: Estimate Your Rebuild Cost

Dwelling coverage (Coverage A) is the part of your homeowners policy that pays to repair or rebuild the house itself. This dwelling coverage calculator gives you a rough rebuild estimate, so you can spot a limit that looks too low before a loss, not after. It takes three numbers and less than a minute.

How to use this calculator

1. Enter your finished living area. Use the heated, finished square footage of the house. You can find it on your appraisal, listing sheet or county property record. Don’t use the lot size, and leave out unfinished basements unless your agent tells you otherwise.
2. Enter a rebuild cost per square foot. This is the hardest number to get right. Ask your insurance agent what figure their replacement cost estimate uses, or ask a licensed local builder. Costs depend on where you live, the materials and the style of the home.
3. Enter your current dwelling coverage. Look on your policy’s declarations page for “Coverage A” or “Dwelling.” That is the most the insurer will usually pay to rebuild the house.
4. Read your results. You get an estimated rebuild cost, the gap between that estimate and your limit, and your coverage as a share of the estimate.

How this calculator works

The tool multiplies your square footage by the cost per square foot. It then compares that estimate with your dwelling limit. The gap is how far your coverage falls short; it never goes below $0. The coverage share, sometimes called insurance-to-value, is your limit divided by the estimate.

Rebuild cost   = Square feet × Cost per square foot
Coverage gap   = Rebuild cost − Current coverage (minimum 0)
Coverage share = Current coverage ÷ Rebuild cost × 100

The default inputs (1,800 square feet, $200 per square foot and $300,000 of coverage) are hypothetical examples, not typical or recommended figures. The tool uses one flat cost for the whole house and leaves out land, debris removal, building code upgrades, detached structures and your belongings. Those are handled by other parts of the policy or by add-ons.

Worked examples

Example 1 (default inputs, hypothetical).

1. Rebuild cost: 1,800 sq ft × $200 = $360,000.
2. Coverage gap: $360,000 − $300,000 = $60,000.
3. Coverage share: $300,000 ÷ $360,000 × 100 = 83.3%.

This owner is above the 80% share many policies require for full replacement cost on a partial loss. But if the house burned down, the limit would be $60,000 short of the estimate.

Example 2 (a larger home, hypothetical). A 2,400 sq ft home in a higher-cost area, at $250 per square foot, insured for $450,000.

1. Rebuild cost: 2,400 × $250 = $600,000.
2. Coverage gap: $600,000 − $450,000 = $150,000.
3. Coverage share: $450,000 ÷ $600,000 × 100 = 75%.

At 75%, this owner is below an 80% requirement. A partial claim could be cut, and a total loss would leave a large shortfall. Try the coinsurance calculator to see how much a partial claim could shrink.

What your result means

Treat the rebuild estimate as a starting point for a conversation with your agent, not a final number. The coverage share tells you how close you are to being fully insured.

If your gap is large, ask your insurer to rerun its replacement cost estimate with your home’s current features. If your share is near 80%, small cost increases could push you under it at the next renewal.

Rules that change the answer

• Required share of replacement cost. The Texas Department of Insurance says most companies require you to insure your home for at least 80% of its replacement cost, and some require 100% (TDI). The NAIC gives the same 80% guideline (NAIC).
• Building code upgrades. California’s insurance department warns that some policies don’t include “ordinance or law” coverage, which pays extra costs to meet current codes when you rebuild (California Department of Insurance).
• Extended or guaranteed replacement cost. Some policies pay a set percentage above your limit if rebuilding costs more than expected. Ask whether yours does.
• Flood is separate. Standard homeowners policies don’t cover flood. National Flood Insurance Program building coverage for a home is capped at $250,000 (FloodSmart).

Common mistakes

• Using market value or the purchase price. Both include land, which doesn’t burn down. Your limit should track rebuild cost.
• Using a national average cost per square foot. Local labor and material prices vary a lot. Use a local figure.
• Forgetting remodels. A new kitchen, addition or finished basement raises rebuild cost. Tell your insurer.
• Never reviewing the limit. Building costs change. Check your limit at each renewal.
• Assuming 80% means fully covered. It may avoid a penalty, but the policy still pays only up to the limit.

Limits and when to get help

This is a quick check, not an appraisal. Your insurer uses its own replacement cost estimate, and that is the number that matters for your policy. Costs can jump after a large disaster in your area, when local demand for builders spikes. Rules and policy forms vary by state.

Ask your insurance agent or insurer to walk you through their estimate, and tell them about remodels, additions or upgraded finishes. New York’s consumer guide shows how an underinsured claim gets paid less (NY DFS). For a deeper look at Coverage A through F, read our guide to what homeowners insurance covers, and use the coverage limits calculator to see the other parts of your policy.