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Jeffrey Burchman, LUTCF 
Jeffrey Burchman, LUTCF
President, Burchman Insurance Capital
Published Oct 4, 2023
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Extended dwelling coverage is an optional endorsem*nt to your homeowners insurance policy that provides additional coverage for the cost to rebuild your home in the event of a total loss. It is also known as extended replacement cost or increased dwelling cost coverage.
Dwelling coverage is the main coverage A section of your homeowners insurance policy, and it protects against direct physical damage caused to your home and attached structures, such as a garage or deck. Extended dwelling coverage provides an additional layer of protection in case the cost to rebuild your home exceeds your dwelling coverage limit.
This coverage is especially important in areas that are prone to natural disasters, such as hurricanes, tornadoes, and wildfires. After a natural disaster, the cost of rebuilding homes can increase due to increased demand for materials and labor. Extended dwelling coverage can help ensure that you have enough coverage to rebuild your home, even if the cost exceeds your policy limit.
You can typically purchase extended dwelling coverage in increments of 10% to 50% of your dwelling coverage limit. For example, if you have $300,000 in dwelling coverage and purchase a 25% extended dwelling coverage endorsem*nt, your total coverage would be $375,000.
Extended dwelling coverage is a relatively inexpensive endorsem*nt, and it can provide valuable peace of mind in the event of a total loss. If you are concerned about the cost to rebuild your home, extended dwelling coverage is a good option to consider.
Here are some of the benefits of extended dwelling coverage:
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If you are considering adding extended dwelling coverage to your homeowners insurance policy, be sure to talk to your insurance agent to determine how much coverage you need and what the cost will be.
For a comprehensive review of your insurance coverage at no charge, contact Burchman Insurance Capital:
410-274-4057
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2 Comments
Sean Pitcher
CEO at Quick Silver Systems Inc
11mo
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Question Jeffery - I am curious if the home is not insured to at least within 80% of its value at time of loss does the extended dwelling coverage make up for the shortfall? With home prices soaring along with improvements it seems to me that many homes are going to fall under the 80% rule at time of loss unless they update their coverages mid-term.
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