Your home’s Coverage A, Dwelling Amount, should represent the amount of money that it would take to rebuild your home, or Replacement Cost. Your MA home insurance policy’s Coverage A amount should represent pure construction cost. Not included is your property’s land value.
Many companies increase your Coverage A amount annually by anywhere from 3% – 6%, in an attemtp to keep pace with inflation and increased construction costs.
If you have not reviewed your Coverage A, Dwelling, amount in a few years, it is a good idea to revisit. Over time, home insurance Dwelling amounts can get far removed (higher or lower) than the home’s actual Replacement Cost amount.
Your independent, Massachusetts insurance agent will be happy to review your coverage.