Home Insurance
Dwelling Coverage
Dwelling coverage insures the physical structure of your home — the walls, roof, foundation, and permanently attached fixtures — against fire, windstorm, hail, and other covered perils. The most important decision in any home insurance policy is whether the dwelling limit reflects what it would actually cost to rebuild your home today.
Home Insurance
What You Need to Know About Dwelling Coverage
Replacement Cost vs. Market Value
Home insurance should be written at replacement cost — what it costs to rebuild with current materials and labor. Market value and assessed value are frequently lower than replacement cost, especially in older homes or in markets where land values are high. Insuring below replacement cost creates a gap that surfaces at claim time.
Extended Replacement Cost
Standard replacement cost coverage pays up to the policy limit. Extended replacement cost coverage pays a percentage above the policy limit if reconstruction costs exceed the face amount — a valuable protection against inflation and post-disaster contractor price increases.
Code Upgrade Coverage
When a covered loss requires rebuilding, local building codes may require upgrades — electrical, plumbing, insulation — that add significant cost beyond replacing what was there before. Ordinance or law coverage pays these additional code-driven costs that a standard dwelling limit doesn't cover.