Home insurance calculator for 2026

Dwelling coverage on a home insurance policy is the coverage for the house itself (the dwelling). It’s based on a replacement cost calculation and should be enough to rebuild your house at current construction costs. It’s not the same as your home’s market value, which is how much you could sell it for (or how much you paid for it).

There are a few ways to calculate home replacement cost, including online calculators or hiring an appraiser. When you request a quote, the insurance company will create a replacement cost calculation. The more detail you provide about your home, the more accurate it will be.

An accurate dwelling amount is vital to getting the best home insurance quotes and the right coverage; most of the other coverages on your policy are a percentage of the dwelling coverage, so take the time to make sure you have it right and aren't underinsured.

Homeowners liability insurance pays out when you or a family member are legally responsible for injuries or property damage to others. It covers:

• Medical and related expenses for injuries to others for which you are responsible
• Damage caused to others' property for which you are responsible
• Legal fees if you are sued
• Judgments resulting from a lawsuit, up to your policy limits.

Experts recommend at least $300,000 in liability coverage; if you have a lot of assets, you should consider a higher limit.

The other critical coverage is for your belongings. It's called personal property coverage. It's important to make an inventory of all the items you own so that you can determine how much personal property coverage you need.

Personal property coverage is typically 50% to 70% of your dwelling coverage limits. However, there are special limits on certain types of property. If you have valuable items, such as fine art, musical instruments, or expensive jewelry, you may need an endorsement to cover them.

You should also consider adding replacement cost coverage for your personal property. This covers your belongings for the cost to replace each item new rather than for the actual cash value, which is the depreciated value.

Your home insurance policy also includes several other coverages. These are the standard coverages:

• Additional living expenses/Loss of use. Loss of use pays for living expenses elsewhere during repairs from a covered claim, and is usually 20% of the dwelling coverage.
• Other structures. Covers other structures on the property not connected to the house like garages or sheds, usually at 10% of the dwelling coverage.
• Medical payments. Pays medical bills for injuries on your property regardless of fault.

You may have options to adjust the amount of coverage for each of these, and may also be offered a wide range of optional add-ons for your policy. It’s best to take the time to consider each option.