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Homeowners Insurance Calculator

Enter your rebuild cost, rate and deductible to estimate coverage and premium.

How it is calculated

Dwelling coverage is the rebuild cost you enter. The base premium is (dwelling / 1000) × rate, where rate is the price per $1,000 of dwelling coverage per year. A deductible above 500 gives a credit: premium × max(0.5, 1 − 0.02 × (deductible − 500) / 500), so each extra $500 of deductible takes about 2% off, with the total discount capped at 50%. Other coverages are fixed shares of the dwelling limit: other structures 10%, personal property 50% and loss of use 20%. Total coverage is the sum of the four. The 2% step and the percentages are this tool's own simplifications, not any insurer's schedule, so a real quote will differ; liability limits are not calculated.

Worked example

A home would cost $300,000 to rebuild, the insurer quotes $3.50 per $1,000, and you choose a $1,500 deductible. Base premium: 300,000 / 1,000 × 3.50 = $1,050. Deductible steps above 500: (1,500 − 500) / 500 = 2, so the factor is 1 − 0.02 × 2 = 0.96. Annual premium: 1,050 × 0.96 = $1,008.00, or $84.00 a month. Total coverage is 300,000 × 1.8 = $540,000.00, of which personal property is $150,000.00.

Try this example →

Common mistakes

  • Entering the market value or purchase price as the dwelling amount: it should be the cost to rebuild the house, and land is not part of it.
  • Typing the rate as a percent of the home value: it is dollars per $1,000 of coverage, so 3.5 means $3.50 per $1,000.
  • Treating the output as a quote: location, claims history, roof age and insurer rules move real premiums a lot, and the 2% per $500 deductible credit is only an approximation.
  • Expecting a lower deductible to cost more here: values at or below 500 earn no credit and none are added as a surcharge.
  • Assuming personal property is covered up to any amount: the tool shows only a fixed 50% of the dwelling limit, while your belongings may be worth more or less.

Sources

About this calculator

Homeowners insurance premiums are typically priced per $1,000 of dwelling coverage (Coverage A), which should reflect the cost to rebuild the home from scratch — not its market value or purchase price, since land value doesn't need to be “rebuilt.” This calculator multiplies your estimated rebuild cost by the insurer's rate per $1,000 to project an annual premium, and shows how raising your deductible (the amount you pay out of pocket before coverage kicks in) typically lowers that premium.

Underinsuring the dwelling is one of the most common — and costly — mistakes homeowners make, since many policies apply a coinsurance penalty that reduces claim payouts if the insured amount falls below a required percentage (often 80%) of the true rebuild cost. Homebuyers shopping for a policy, insurance agents, and mortgage lenders (who typically require proof of adequate coverage) use this kind of estimate to set dwelling limits that actually match local construction costs.

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  • Editorial team

    Try one home at three deductibles. With 300000 of rebuild cost and a rate of 3.5, deductibles of 500, 1000 and 2500 give annual premiums of 1,050.00, 1,029.00 and 966.00. Moving from 1000 to 2500 saves 63.00 a year in this model, so weigh that against the extra 1,500 you would need to hold in cash after a loss. What deductible did your latest quote use, and how close was it to this estimate?

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