Home Insurance Cover Estimator
Estimate the right home-insurance sum-assured for your structure and contents.
Sizing Home Insurance Correctly
Most homes are underinsured because owners insure either the market value (which includes land) or the original purchase price (which ignores inflation). Both lead to bad outcomes at claim time: you receive less than what it costs to actually rebuild.
Structure vs contents — what each covers
- Structure cover insures the physical building — walls, roof, floors, fittings — at reconstruction cost. It is calculated as carpet area × construction cost per square foot, never market value.
- Contents cover insures everything movable inside — furniture, electronics, clothing, appliances, jewellery (within sub-limits).
- Combined (Structure + Contents) is typically the cheapest way to buy both and is recommended for owner-occupied homes.
Risk-zone matters more than people think
Flood, earthquake, and cyclone risk drive a large part of the premium. The same square footage can attract a premium 70% higher in a high-risk coastal or seismic zone than in a low-risk inland one. Some natural perils may even be excluded unless you specifically opt in via an endorsement.
Practical tips
- Re-value your structure every 3 years to keep up with construction-cost inflation.
- Photograph and inventory your contents — it makes claims faster and prevents disputes.
- Schedule high-value items (jewellery, art, electronics) individually if they exceed the policy's sub-limit.
Replacement cost is the only number that matters
Home insurance is built around the cost of rebuilding the structure from scratch — not its market value, not its purchase price, not the land value. A $1.2M home in San Francisco might cost only $600K to rebuild because most of the price is the land. A $300K home in rural Iowa might cost $400K to rebuild because materials and labour are sourced from further away. Underinsuring against replacement cost is the single largest mistake in property insurance, and it surfaces only at claim time when the loss settlement undershoots the actual rebuild quote.
What goes into the rebuild estimate
- Square footage and quality of construction — basic finish vs custom millwork can swing $/sqft by 2–3x.
- Local labour and material costs — supply-chain shocks (the 2021–2023 lumber spikes) showed how fast rebuild costs can change.
- Code upgrades — when you rebuild, you build to current code, which may require sprinklers, hurricane straps, seismic retrofitting, or accessibility features not present originally.
- Demolition and debris removal — sometimes a separate sub-limit; ensure it is included.
- Foundation, hardscape, detached structures — pools, fences, sheds, garages. Often capped at 10% of dwelling coverage; verify the cap is sufficient.
Recommended coverage components
- Dwelling (Coverage A) — replacement cost of the structure. Get a professional rebuild estimate or use the insurer's tool; do not guess.
- Other structures (Coverage B) — typically 10% of A. Increase if you have a detached garage, large workshop, or substantial outdoor structures.
- Personal property (Coverage C) — typically 50–70% of A. Walk through the house and decide if that is enough.
- Loss of use (Coverage D) — typically 20% of A. Pays for hotels, meals, and additional living costs if you cannot live in the home during rebuild.
- Personal liability — minimum $300K; $500K–$1M for homeowners with pools, dogs, or notable assets.
- Medical payments to others — typically $5,000 default; adequate for most.
- Extended replacement cost endorsement — pays 25–50% above dwelling coverage if rebuild costs exceed the policy limit (common after regional disasters). Strongly recommended.
- Ordinance or law endorsement — pays for code-upgrade costs. Essential for older homes.
Coverages homeowners commonly miss
- Flood — never covered by standard policies. Separate NFIP or private flood policy required.
- Earthquake — separate policy in earthquake-prone regions; expensive but transformative if needed.
- Sewer backup and sump-pump failure — separate endorsement; cheap and high-value.
- Service line — buried water, sewer, electric lines from the street to the house. Repairs are the homeowner's responsibility; the endorsement is inexpensive.
- Identity theft — increasingly bundled; useful as a low-cost add-on.