How much dwelling coverage do I need on my homeowners insurance?

Dwelling coverage should equal the rebuild cost (NOT market value, NOT purchase price). For a typical 2,000 sqft home, rebuild cost is $200–$450/sqft installed in 2026 — so $400,000–$900,000 of dwelling coverage. Use a local builder's rough quote for new-construction $/sqft, multiply by your home's heated square footage, and add 15–25% for code-upgrade coverage (post-disaster rebuilds must meet current code, which adds substantial cost in older homes). Underinsurance is the #1 homeowner's-insurance mistake — about 60% of US homes are underinsured by 20%+ relative to actual rebuild cost.