Estimate your dwelling coverage and annual premiums based on local replacement costs.
$100,000
$300,000
$500,000
$1,000,000
$500
$1,000
$2,500
$5,000
Minimum Dwelling Coverage (Replacement Cost):$0
Estimated Personal Property Coverage:$0
Base Annual Premium:$0
Estimated Total Annual Premium:$0
How to Calculate Your Home Insurance Needs
Determining how much house insurance you need is not based on the market value or tax assessment of your home. Instead, it is based on the Replacement Cost—the actual amount of money it would take to rebuild your home from the ground up in the event of a total loss.
Key Factors in the Calculation
Dwelling Coverage: This is calculated by multiplying the total square footage of your home by the local construction costs per square foot. If high-end finishes like granite or hardwood are used, your cost per square foot will increase.
Personal Property: Usually, insurers set this at 50% to 70% of your dwelling coverage, but you can adjust this based on the actual value of your belongings.
Liability Protection: This covers legal costs if someone is injured on your property. Standard policies usually start at $100,000, but $300,000 is often recommended.
Deductibles: A higher deductible (the amount you pay out of pocket before insurance kicks in) will lower your annual premium.
Example Calculation
If you have a 2,000 sq. ft. home and local building costs are $200 per sq. ft., your dwelling coverage should be at least $400,000. At an average premium rate of 0.35%, your base premium would be approximately $1,400 per year. Increasing your deductible from $500 to $1,000 could save you between 10% and 15% on that annual cost.
Why Home Age Matters
Older homes often have higher premiums because their plumbing, electrical, and roofing systems are closer to the end of their lifespan, increasing the risk of a claim. However, updates to these systems can often trigger discounts from insurance providers.
function calculateHouseInsurance() {
var sqft = parseFloat(document.getElementById('homeSqft').value);
var cost = parseFloat(document.getElementById('constCost').value);
var property = parseFloat(document.getElementById('personalProperty').value);
var liability = parseFloat(document.getElementById('liabilityLimit').value);
var deductible = parseFloat(document.getElementById('deductible').value);
var age = parseFloat(document.getElementById('homeAge').value);
if (isNaN(sqft) || isNaN(cost) || isNaN(property) || isNaN(age)) {
alert("Please enter valid numeric values for all fields.");
return;
}
// 1. Calculate Dwelling Coverage (Replacement Cost)
var dwellingCoverage = sqft * cost;
// 2. Base Premium Calculation (Standard rate ~0.4% of dwelling coverage)
var basePremium = dwellingCoverage * 0.004;
// 3. Adjust for Personal Property (Add cost if property exceeds standard 50% dwelling)
var propertyFactor = 0;
if (property > (dwellingCoverage * 0.5)) {
propertyFactor = (property – (dwellingCoverage * 0.5)) * 0.002;
}
// 4. Liability Adjustment
var liabilityCost = (liability / 100000) * 25; // Roughly $25 per $100k
// 5. Age Surcharge (0.5% increase per year over 10 years)
var ageSurcharge = 0;
if (age > 10) {
ageSurcharge = basePremium * ((age – 10) * 0.005);
}
// 6. Deductible Discount
var deductibleDiscount = 0;
if (deductible >= 1000) deductibleDiscount = basePremium * 0.10;
if (deductible >= 2500) deductibleDiscount = basePremium * 0.20;
if (deductible >= 5000) deductibleDiscount = basePremium * 0.30;
// 7. Total Calculation
var totalAnnualPremium = basePremium + propertyFactor + liabilityCost + ageSurcharge – deductibleDiscount;
// Minimum premium safety
if (totalAnnualPremium < 400) totalAnnualPremium = 400;
// Display Results
document.getElementById('resDwelling').innerText = '$' + dwellingCoverage.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0});
document.getElementById('resProperty').innerText = '$' + property.toLocaleString(undefined, {minimumFractionDigits: 0, maximumFractionDigits: 0});
document.getElementById('resBase').innerText = '$' + basePremium.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resTotal').innerText = '$' + totalAnnualPremium.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('insuranceResult').style.display = 'block';
}