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  • Writer's pictureCharlotte Burr

Standard Dwelling Coverage VS Extended Dwelling Coverage

When buying homeowners insurance, it is easy to get confused by all of the insurance terminology. Today we will be talking about a keystone term in the homeowners insurance world, dwelling coverage and the difference between standard and extended.

Standard Dwelling Coverage: Standard dwelling coverage is the base of all homeowners policies. This coverage is usually based on the replacement cost of your home at the time of signing your homeowners insurance policy. The drawback to only having standard dwelling coverage is that it has its set limit and does not account for things like repairs, labor, and materials costing more at a later date.

Extended Dwelling Coverage: Extended dwelling coverage also covers the initial value of your home plus a certain percentage on top of that to account for things costing more to rebuild/repair. Usually, this percentage can be anywhere from 10-50% of the value of your house depending on your policy.

How do I know which one to get: It is always smart to get extended dwelling coverage. If you live in an area that is prone to extreme weather especially, when a weather event hits every one within an area, the cost of labor and materials will skyrocket and it is important to be covered. But for everyone else, if you have extended replacement cost coverage, you don’t need to worry about or keep up with the cost to rebuild your house which will increase over time.   

Independent insurance brokerage located in Tempe, AZ. We offer auto insurance, homeowners insurance, life insurance, renters insurance, commercial insurance…

Disclaimer: Coverage will vary on state, insurance company, and type of policy.



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