Dwelling Coverage

What Is Dwelling Coverage?

It is critical that the main structure has sufficient coverage to rebuild in the event of a total loss. 

Market value (selling price of your home) has little bearing on the real cost of debris removal, reestablishing utilities, and rebuilding the structure to completion. 

All carriers use an algorithm (from carrier / agent input of details on the home) to determine that “rebuilding cost”.   Most policies also have a built-in “additional dwelling coverage” (coverage cushion) of 20-25% just in case of miscalculation. 

In the event of a total loss, carriers don’t want coverage to be a bit short and squabble over a few thousand dollars.  

It should be noted that the rebuilding cost from carrier to carrier can vary widely, as do the premiums.