Auto Insurance Renters Insurance Home Insurance Recreational Vehicles Business Property & Liability Commercial Auto Ex-Patriots Home Page About Us Get A Quote Customer Service Map & Directions Forms Contact Us

We are asked frequently about the dwelling coverage limit on home insurance policies--

“Why is the dwelling coverage not the same as the purchase price?”

“I only paid x amount for the home why do I need it insured for more?”

“My loan is X amount don’t I need insurance for that amount?”

Basically when you are purchasing home insurance the dwelling coverage amount is unrelated to the market value, tax value, and purchase price.

The home insurance is based on the estimated replacement/rebuild cost of the home. Each company uses building estimate tools/calculator where the data about the home is input such as the square footage, features, number of bathrooms, attached garages, porches the quality of construction(basic, average, custom etc.). The tool is only an estimate so if you do feel strongly that the coverage amount on your policy is either to low or to high we would recommend reviewing that with your agent/company to make sure you are comfortable with the coverage amount on your policy.

If there is a loan on the home you are still only required to insure based on the estimated building cost even if that is lower than the loan amount.

We hope this information helps to provide a basic understanding/answers to some of those frequent questions we receive.



Scott E Weeks, CPCU President

phone: 386.734.7283 | email:|


206 N. Woodland Blvd  Deland Fl  32720

Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013

View Mobile Version
AAdvantage Insurance AAdvantage Insurance Insurance Agency Web Design