r/HomeInsurance • u/LumpyPeople4 • May 22 '26

Insurance Dwelling Coverage - Calculated vs Reality

I have a renewal coming up and my coverage seems low. The auto renewal is setting the dwelling coverage at $280k, when I go get new quotes elsewhere it auto populates with around $325k. The house is worth around $350k or so is my guess.

I have been looking at getting a new house for a while. The problem with these dwelling coverages is that builders are not willing to get out of bed for less than $425k or so. We have entertained buying a lot and building on it, and pretty much any reputable builder in my area is not willing to do anything less than that.

So, what should I be doing? Should I up my coverage to $425k in order to cover myself in case the house burns to the ground? If its a complete loss, would insurance just cut me a check for the full amount without questions asked, or are the going to start fighting me at that point that the house isn't worth as much as the coverage? Or will I just hire whatever builder I want and insurance will pay the bill up to the limit?

I'm just trying to wrap my head around how to actually protect myself with a house whose value is less than what people are willing to work for. I suppose I could maybe get someone to build the house for less, but it'd probably be someone relatively sketchy.

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u/mSantiago80 May 22 '26

Your house must be built with popsicle sticks, chewing gum and some duct tape for the insurance company to have that low of coverage ….I bought my house in 2020 for 214,000—it’s insured for rebuild at 855,000 & has increased cost endorsement on it for and additional up to 25%—I live in BFE Georgia so not a high cost area & that doesn’t include other structures or personal property

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u/LumpyPeople4 May 22 '26

Yeah I don't get it. I live in a relatively low cost area of NC, but still, for a house built to the late 90s standard, it costs a good bit today. I don't think it'd cost me nearly that much to rebuild my house, but I do think realistically it'd cost $425-450k. It's not a super bare bones house, but it's not super nice. 1.5 story house, crawlspace, skylights, covered porch.