Most homeowners we meet are insured for the wrong number. Not wildly wrong — usually 15 to 30 percent — but enough to turn a bad week into a bad decade.
Market value is not rebuild cost
What your home would sell for includes the land, the school district and the view. None of those burn down. What you need is the cost to rebuild the structure, at today’s labour and material prices, to today’s building code.
In coastal New Hampshire that figure sits around $260–$340 per square foot in 2026. A 2,000 sq ft colonial therefore needs roughly $520,000–$680,000 of dwelling cover, even if it was bought for $410,000.
Three numbers to check tonight
- Dwelling (Coverage A): should match a current rebuild estimate, not your mortgage.
- Personal property (Coverage C): typically 50–70% of dwelling. Walk each room with your phone camera.
- Liability: at least $300,000; $500,000 if you have a pool, a trampoline or a dog.
“The cheapest policy is the one that pays out in full when you need it. Everything else is a discount on disappointment.”
Extended vs. guaranteed replacement
Extended replacement adds a cushion — usually 25% or 50% above your dwelling limit — for when post-storm demand drives up prices. Guaranteed replacement removes the cap entirely, and costs about 8–12% more. For older homes or those in storm-exposed areas, we usually recommend at least extended cover.
When to review
Any renovation over $10,000, a finished basement, a new roof or a big purchase like an engagement ring should trigger a quick call. We review every client’s limits each year anyway — it takes fifteen minutes.
