Dwelling Coverage on Homeowner Insurance | Austin, Texas


Like this article? Find more great tips by subscribing to my blog here.

A common misconception regarding homeowner insurance is that the dwelling coverage should reflect the market or tax-assessed value of the home.

Click here to see my detailed guide to home insurance.

In a depressed real estate market, the dwelling coverage can be the same or even higher than the market value. However, in a red-hot real estate market like Austin, Texas, the dwelling coverage is usually less than the market value or loan amount, as buyers are paying more for an existing home than the cost to build.

Market Value


Market value includes the value of the home and the land, whereas the dwelling coverage on a homeowner policy does not include the land or dirt that the house is built upon. If there is a loss, the responsibility of an insurance company is to restore the structure of the home to the condition prior to the loss, whether by fire, water, hail, or other peril covered by the homeowner policy.

Related article: Protecting Your Roof From Hail Damage

Older Dwellings

Sometimes older homes have architectural details and other features that are not reflected in the market value.

It is important for homeowners to inform their insurance company about the specific features of their home, especially when the insurance is initially secured and after any renovations are made.

Requesting a Homeowner Insurance Quote

When requesting a quote, homeowners should not assume the dwelling coverage will be the same from one insurance company to another, nor should they assume that an insurance company has the correct dwelling coverage listed on their policy. It is the responsibility of the homeowner to ensure the dwelling coverage is correct on their policy.

Related article: 3 Factors That Increase Home Insurance Rates

People tend to compare apples to apples, and often request a quote for a certain dwelling coverage amount. However, a good insurance agent will not try to match coverages, but instead will ask for the details of the home before providing a quote, in order to calculate the correct dwelling coverage and replacement cost.

In addition to insuring the home structure, insurance companies may cover other structures, such as:

  • sheds
  • workshops
  • fences
  • driveways
  • detached garage

Usually the coverage for other structures is 10% of the dwelling coverage, but this amount can be increased.

Homeowners should review the dwelling coverage on their homeowner policies annually to ensure their home is adequately insured and protected in the event of a total loss. Click here to see my detailed guide to home insurance.

Like this article? Click here to subscribe to my blog for the latest tips!

Cheri Roman
Cheri Roman
I’m a graduate of the University of Texas & have a master’s degree in Business Administration from Texas A&M University, Corpus Christi. As a former teacher, I believe in educating my clients about insurance and investment options, and partnering with them to protect their family and achieve their financial goals.


  1. I applaud your professionalism, dedication and integrity that we all were audience to for the past week. Linda C.

  2. The factor is, these heads are not disembodied in any respect they are the tops of giant stone statues which have been buried as much as their necks like Ted Danson in Creepshow. Seemingly because photography began, photographs in the Eiffel tower have been sold in coffee outlets throughout the globe to persons sporting scarves during the middle of summer time to tack for the wall of their studio apartment whereas listening for the Decemberists.
    Valentino Pumps
    [url=http://www.saltmarketing.co.uk/valentino-pumps-c-9.html]Valentino Pumps[/url]

  3. Your program was excellent and was the most positive and productive program that I have ever received. I thank you so very much for giving me the opportunity to change my life. Edward R.

  4. Good – I should definitely pronounce, impressed with your website. I had no trouble navigating through all tabs as well as related info ended up being truly easy to do to access. I recently found what I hoped for before you know it in the least. Reasonably unusual. Is likely to appreciate it for those who add forums or anything, web site theme . a tones way for your client to communicate. Nice task..

  5. Your dynamic delivery kept me alert, and involved. It was a very rewarding experience for me. Thank you for sharing your time, your knowledge and your sense of humor. Janice M.

  6. I’m extremely pleased to uncover this website. I wanted to thank you for your time, and for this excellent study – I definitely appreciated every single bit of it, and already have you book marked to check out new stuff.

  7. This design is wicked! You definitely know how to keep a reader entertained. Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Fantastic job. I really enjoyed what you had to say, and more than that, how you presented it. Too cool!
    replica louis vuitton [url=http://www.nsbenycalumni.org]replica louis vuitton[/url]

Leave a Reply

Your email address will not be published. Required fields are marked *