Size dwelling, other structures, personal property and loss-of-use coverage, and test whether a higher deductible pays off.
Updated October 12, 2026 · fact-checked against official sources
Your home
Deductible quotes
Dwelling coverage to rebuild (Coverage A)
$360,000
1,800 sq ft × $200 per sq ft. Base it on the cost to rebuild, not the sale price.
Your current limit is $60,000 below this estimate (83% of rebuild cost). Ask your insurer to recheck it.
A · Dwelling$360,000
B · Other structures (10%)$36,000
C · Personal property (50% of A)$180,000
D · Loss of use you may need$36,000
D · Typical policy limit (20% of A)$72,000
E · Personal liability$300,000
Property coverage total (A + B + C)$576,000
Higher deductible: worth it?
Yearly premium savings$200
Extra you pay per claim$1,500
Years without a claim to break even7.5 years
Savings take a long time to cover one extra claim. The lower deductible may be the better deal.
Flood is not covered. Most homeowners policies exclude flood damage; you buy it separately, for example through the National Flood Insurance Program (floodsmart.gov). Earthquake is also usually a separate policy.
You need enough dwelling coverage to rebuild your home from the ground up at today’s local construction prices. Most other limits on a standard policy are set as a percentage of that number, so getting the dwelling figure right matters most. This tool shows the coverage math; it does not quote premiums, which depend on your insurer, location and home.
Typical policy defaults
Other structures (B)
10% of A
Detached garage, shed, fence
Personal property (C)
50–70% of A
Check against a home inventory
Loss of use (D)
~20% of A
Extra living costs while displaced
Liability (E)
$100,000+
III suggests considering $300k–$500k
How the estimate works
Coverage A, dwelling: finished square feet × local rebuild cost per square foot. Get the cost from your insurer’s replacement-cost estimate or a local builder. Rebuild cost is not the sale price; it depends on local construction costs and the size of the home.
Coverage B, other structures: a percentage of A. Washington’s insurance regulator and the Texas Department of Insurance both describe 10% as typical.
Coverage C, personal property: either a percentage of A (usually 50–70%) or the replacement value of your home inventory. Policies often cap special items such as jewelry, so list those separately.
Coverage D, loss of use: months you could be out of your home × the extra you would spend each month above normal costs. We compare it with a typical 20% limit.
Deductible break-even: the extra deductible divided by the yearly premium savings. That is how many claim-free years it takes for the savings to cover one extra claim.
Worked example
A 1,800 sq ft house where the insurer estimates rebuild cost at $200 per sq ft (an example figure; yours will differ). The current policy has a $300,000 dwelling limit. You compare quotes of $2,000 a year with a $1,000 deductible and $1,800 with a $2,500 deductible.
Example coverage plan
Coverage
Math
Amount
A · Dwelling
1,800 × $200
$360,000
B · Other structures
10% of A
$36,000
C · Personal property
50% of A
$180,000
D · Loss of use needed
12 months × $3,000
$36,000
D · Typical limit
20% of A
$72,000
Deductible break-even
$1,500 ÷ $200 a year
7.5 years
The current $300,000 limit is $60,000 short of the rebuild estimate, so this owner would ask the insurer to raise it. The higher deductible saves $200 a year but costs $1,500 more per claim, so it takes 7.5 claim-free years to come out ahead.
Edge cases
Older or custom-built homes may cost more per square foot to rebuild; ask for a detailed replacement-cost estimate.
After a renovation or addition, update your dwelling limit; the old figure no longer fits.
A lender may require a minimum deductible or coverage amount.
Enough to rebuild your home at today’s local construction costs, which can be more or less than its market value. A simple estimate is finished square feet times a local rebuild cost per square foot from your insurer or a builder.
What percentage of dwelling coverage is personal property?
Washington State’s insurance regulator and the Insurance Information Institute both describe personal property coverage as usually 50 to 70 percent of the dwelling limit. A home inventory tells you if that is enough.
What do other structures and loss of use usually cover?
Other structures (detached garage, shed, fence) is typically 10% of the dwelling limit. Loss of use pays extra living costs if your home is unlivable after a covered loss; many policies set it at about 20% of the dwelling limit.
How much liability coverage should I have?
Most policies include at least $100,000. The Insurance Information Institute suggests considering $300,000 to $500,000, and an umbrella policy for more. Umbrella insurers commonly require $300,000 of underlying liability.
Does homeowners insurance cover floods?
No. FloodSmart, the National Flood Insurance Program site, says most homeowners insurance does not cover flood damage. Flood coverage is a separate policy.
Fact-checked October 12, 2026
Re-verified 2026-10-12. WA OIC consumer guide (2025-03 PDF): other structures typically 10% of dwelling, personal property usually 50-70%, most policies set loss of use at 20%, homeowner policy will not cover flooding, earthquake is optional coverage, a higher deductible can reduce rates and a lien holder may require a minimum deductible. TDI: other structures 10% of insured value. III: personal property about 50-70%, ALE about 20%, minimum $100,000 liability, consider $300,000-$500,000, most umbrella insurers require $300,000 underlying. FloodSmart: most homeowners insurance does not cover flood damage. Math hand-checked: 1,800 sq ft x $200 = $360,000 A, B $36,000, C $180,000 at 50%, D need $36,000 vs $72,000 typical, break-even $1,500 / $200 = 7.5 years; 2,400 sq ft x $250 = $600,000 A, B $60,000. No premium figures stated; rebuild cost default is an example.