Dwelling coverage is the primary aspect of your homeowner’s insurance policy that covers most instances of damage or destruction to your house or attached structures such as a garage or an addition to your home built during a home remodel.
While there are some rare cases where certain damages may be excluded on your insurance policy, you can rest assured knowing that most home repairs and rebuilding costs will be paid by your dwelling coverage for all covered incidents.
The Coverage A limit of a homeowners policy is determined by the cost to rebuild the home at today’s prices in the event of a covered loss. Factors such as building cost, materials, and labor factor into the Coverage A limit at the time the policy is purchased.
Coverage A limits are not to be confused with market value calculations or real estate pricing, as these numbers are often arbitrary and based on what someone is willing to sell or buy a home.
To determine your homes Coverage A limit, your agent will need to complete an industry estimate which will take into consideration the following:
- Age of Home
- Age of Roof
- Construction Type
- Building Materials
- Size of Home
- Flooring & Fixtures