InsuoraRebuild cost, not market value โ the thing people get wrong
This trips up a lot of people, so it's worth being clear. Home insurance is about what it would cost to build your house again from scratch โ the lumber, the labor, the roof โ not what you could sell it for. Market value includes the land, and the land doesn't burn down. So the two numbers are often nothing alike. In a cheap-land, high-build-cost spot, your rebuild figure can be way above the sale price; near a pricey city, it can be well below. Insure for the rebuild cost and you're covered. Insure for the sale price and you're guessing.
The math is simple: your square footage times what it costs to build per square foot in your area. The national average runs around $160 a square foot, but it swings with how the place is finished and where you live, which is what the boxes above are for.
What goes into the number
- Rebuild the house โ square footage times the local build cost. This is your main โdwellingโ figure.
- Your belongings โ furniture, clothes, electronics, all of it. Around half your rebuild cost is the usual starting point, more if you own a lot.
- Garage, shed, fences โ anything not attached to the house. Usually about 10% of the rebuild cost.
- Somewhere to live while it's fixed โ hotels and meals if you're put out of the house. Policies normally set this around 20% of the rebuild cost.
- Liability โ covers you if someone's hurt on your property. We'd suggest $300,000 as a sensible floor.
What affects the premium estimate
- State โ the biggest swing factor. Florida and Louisiana are the most expensive states in the country (more than double the national average), driven by hurricane and flood exposure. Oklahoma and Kansas see elevated rates from tornado and hail. California has high wildfire exposure, and some standard carriers have reduced or pulled back coverage there.
- Construction type โ brick and masonry homes typically cost 10โ15% less to insure than wood-frame homes. Masonry is more resistant to fire and wind, so insurers price it lower. Most American homes are wood frame, which is the default in the calculator.
- Home and roof age โ older homes cost more to insure. Older wiring, plumbing, and roofing all raise the risk of a claim. A roof under 5 years old can lower your premium noticeably; a roof over 25 years old can raise it significantly or trigger coverage limits.
- Deductible โ choosing a higher deductible ($2,500 or $5,000) meaningfully lowers the annual premium. Many policies in high-risk states now have separate, percentage-based deductibles for wind, hail, or hurricane damage on top of the standard deductible.
What standard homeowners insurance does NOT cover
Two big ones that catch people off guard:
- Flood โ standard homeowners policies explicitly exclude flood damage. If you're in a flood-prone area (or even somewhere that flooded once), you need a separate policy. The federal government runs the NFIP (National Flood Insurance Program) โ check FloodSmart.gov to see your risk and buy a policy. Private flood insurers are also an option.
- Earthquake โ also excluded from standard policies. Separate earthquake insurance is available; it matters most in California, the Pacific Northwest, and parts of the New Madrid Seismic Zone.
In high-risk states like Florida, Louisiana, and Texas, many homeowners buy three separate policies: standard homeowners, flood (NFIP or private), and sometimes wind-only or hurricane coverage. The calculator above estimates the standard homeowners premium only.
Questions people ask
- Is this free?
- Yes. No account, no catch, nothing to pay. It runs right here in your browser.
- Do I have to give my name or email?
- No. You only enter a few facts about the house. Nothing leaves your browser and we don't ask who you are.
- Why isn't this based on what my house is worth?
- Because insurance pays to rebuild, not to buy. Market value counts the land, which doesn't get damaged. Rebuild cost is the number that matters, and it's why so many homes end up underinsured.
- How much cover do I need for my stuff?
- About half your rebuild cost is a fair starting point, more if you own a lot or have expensive items. A quick walk through each room writing down what you own is the best check.
- Does home insurance cover flooding?
- No. Standard homeowners policies exclude flood damage โ it's one of the most common misunderstandings in insurance. If you're in or near a flood zone, you need a separate NFIP or private flood policy. Check FloodSmart.gov for your property's risk and pricing.
- Is this a quote?
- No. It's a guide to how much cover to ask for. Your actual price comes from an insurer who can look at your specific home.