Question : Is home insurance dwelling coverage the amount they will actually rebuild?
Assume my home insurance policy has $ 200,000 dwelling coverage, but my home is only worth $ 130,000. If my home burns down, will they rebuild up to a $ 200,000 home or only replace what my home was?

For example, if my current home only has 1 garage stall, would they build my new home with 2 garage stalls?
dwelling insurance

Best answer:

Answer by Lady Macbeth
They will only replace what your home is actually worth. It doesnt matter how much you had it covered for. If you insure it for under the amount it is actually worth, you will only recieve the amount that you insured it for. Its important to habe the exact property value, or atleast round it to the next thousandth. You should reevaluate the value every year because of inflation