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Homeowners Insurance: How is the Dwelling Coverage figured?



A lot of people have the misconception that the Dwelling Coverage on your insurance policy reflects the Market Value of your home. For most insurance policies, …

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  • So I paid $80,000 for my home in Oct 2016. My Coverage A was $105,000. Right now I owe ~$78,000 and my Coverage A is now over $136,000. Obviously if it does by some miracle cost $136,000 to rebuild, I'd get that whole lump. But what if the house DOESN'T cost $136,000 to rebuild, but market value is $125,000. Does the insurance basically just pay UP TO the final amount the home cost to rebuild or do they just cut you a check for $136,000? I would imagine that the market value would be even higher than before the loss if they're paying to build the exact same home brand new?

  • Do I have to rebuild the exact home if something happens? Can I build a smaller house and use excess of the dwelling coverage for something else? Another question, I have a 2-floor family home. Can I insure rebuilding a smaller 1-floor house? After kids go to college, there is no need for us for such big house. If something would happen, I would never want to rebuild the same house.
    Another question: $125/sq ft x House Sq. Ft. Do you include a basement here? A living space or total sq. ft.?

  • Why Pay o value. Only gives ins more money. It doesn’t cost as much to build a house and the land is also on value. Lower dwelling means less money giving away on Incase

  • I see ya'll offer homeowner's and car but do ya'll offer Flood Insurance? Also are you only a local business or do you service the USA as I'm in FL and may be a silly question but hey if I don't know …I ask! 1st time homebuyers soon to be here as we are house hunting and shopping around for insurance and possibly considering ya'll as I've loved all your videos as well as ya'lls heart and passion and seem like quality people with the heart of a teacher which is so appreciated and rare these days! 🙂 So glad I randomly searched youtube for home buying process and insurance and discovered ya'll! You guys definitely stood out to me amongst all the other countless videos and research I've done so keep up the great work! Thanks!

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