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Home Insurance Replacement Cost Calculator

Estimated dwelling coverage needed to rebuild your home — not its market value.

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Last reviewed 2026-08-31

About the Home Insurance Replacement Cost Calculator

Estimates the dwelling coverage amount needed to rebuild your home from the ground up at today's construction costs — a figure that's often very different from your home's market value or purchase price.

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How to use it
  1. Enter your home's total finished square footage.
  2. Pick a construction quality tier as a starting point.
  3. Adjust the cost-per-square-foot field to match your actual local rebuild costs.
  4. Adjust the overhead % for demolition, permits, and contractor margin.
  5. Read the recommended replacement-cost coverage.
Formula
Replacement cost = square footage × cost per sq ft × (1 + overhead %).
Worked example

A 2,000 sq ft home at the Standard tier ($200/sq ft) with 12% overhead: 2,000 × 200 = $400,000 base, × 1.12 = $448,000 recommended dwelling coverage.

2026 U.S. average construction cost by quality tier
2026 U.S. average construction cost by quality tier
TierCost per sq ft
Economy / basic tract build$130
Standard$200
Custom$320
Luxury / high-end finishes$450
Interpreting your result

Replacement cost is not market value. Market value reflects land, location, and buyer demand; replacement cost reflects only what it takes to rebuild the physical structure. This is a planning estimate — ask your insurer for a professional replacement-cost estimate before setting your policy's dwelling limit.

Recommendations
  • Construction costs vary 20-25% above the national average on the West Coast and in New England, and run about 5% below it in the Midwest and Southeast.
  • Re-check your replacement cost every couple of years.
  • Exclude land value entirely — you don't need to rebuild the lot your house sits on.
Frequently asked questions
Market value includes land and location demand, which survive a loss and don't need rebuilding.
See the full methodology and sources for every finance calculator
Disclaimer

Illustrative estimate only, not financial or tax advice. Verify figures with a licensed adviser or your local tax authority.