How much homeowners insurance do I need?

The right amount of homeowners insurance isn't a single number — it's a combination of coverage limits that match your specific home and situation. Here's how to think about each part.

Dwelling coverage

Dwelling coverage (Coverage A) is meant to rebuild your home if it's destroyed. It's based on the rebuild cost — not the market value or what you paid for the house. Rebuild costs depend on local construction labor and materials, square footage, and features like custom finishes.

Many insurers can estimate this for you using replacement-cost calculators. As a starting point, talk to a local contractor or use the III's guidance on dwelling coverage.

Other structures

Coverage B covers detached structures — garages, sheds, fences. It's typically set at 10% of your dwelling limit by default, which works for most homes but may need to be raised if you have a large detached garage or guest house.

Personal property

Coverage C protects your belongings. The default is usually 50–70% of dwelling coverage. Walk through your home and estimate the cost to replace clothing, furniture, electronics, and appliances. High-value items (jewelry, art, collectibles) often need separate scheduled coverage.

Liability

Liability (Coverage E) protects you if someone is injured on your property or you accidentally damage someone else's property. Most experts suggest a minimum of $300,000, with $500,000 or higher for homeowners with significant assets. An umbrella policy can extend this further.

Loss of use

Coverage D pays for additional living expenses if you can't live in your home after a covered loss. It's typically 20–30% of dwelling coverage.

Once you have a sense of your limits, the next step is comparing quotes. Try our coverage calculator for a tailored starting point.