Extended Replacement Cost Coverage Gap Analyzer

Blend updated rebuild estimates with your policy's extended replacement endorsement and projected construction inflation to see whether the dwelling limit will keep pace. Adjust the projection horizon and premium factor to forecast how much additional Coverage A you may need at renewal and what the incremental annual premium could look like.

Current Coverage A limit on your homeowners policy before applying extended replacement endorsements.
Latest full rebuild estimate, including demolition and debris removal allowances.
Percentage of additional Coverage A provided by your extended replacement endorsement (enter 25 for 25%).
Projected annual increase in rebuild costs driven by labor, material, and supply chain inflation.
Optional — defaults to 2 years when blank to align with typical renewal reviews or appraisal cycles.
Optional — defaults to $4.50. Adjust to reflect your carrier's annual rate per $1,000 of additional Coverage A.

Insurance premiums and underwriting decisions vary by carrier. Review coverage recommendations with your licensed insurance professional before requesting policy changes.

Examples

  • Example 1 — $650,000 limit, $780,000 rebuild, 25% extension, 6% inflation (2-year default) ⇒ Projected coverage shortfall in 2 years: $63,908.00 | Recommended dwelling limit: $876,408.00 | Estimated annual premium change: $1,018.84
  • Example 2 — $520,000 limit, $600,000 rebuild, 20% extension, 4% inflation, 3-year horizon, $5.25 premium rate ⇒ Projected coverage shortfall in 3 years: $50,918.40 | Recommended dwelling limit: $674,918.40 | Estimated annual premium change: $813.32

FAQ

Should I update inputs after a new appraisal?

Yes. Re-run the calculator whenever you obtain a replacement cost appraisal or major renovation quotes so your coverage keeps pace with updated construction pricing.

How do ordinance or law endorsements fit in?

Ordinance or law coverage handles code upgrades separately. Keep that endorsement in mind, but this calculator focuses on Coverage A and the extended replacement multiplier only.

What if inflation cools off sooner?

Adjust the inflation percentage downward and shorten the projection horizon to simulate moderating labor and material costs, then compare the outputs to your base scenario.

Can I factor in personal property coverage?

Personal property limits typically scale with Coverage A. Discuss with your agent whether increasing the dwelling limit automatically adjusts your contents coverage or requires a separate endorsement.

Additional Information

  • Extended replacement endorsement multiplies your base dwelling limit by the selected percentage to establish the policy cap.
  • Projected rebuild cost compounds construction inflation across the chosen projection period.
  • Coverage shortfall shows how far the policy limit trails the inflation-adjusted rebuild estimate.
  • Recommended limit aligns Coverage A with the higher of the projected rebuild or the current extended replacement ceiling.
  • Premium change uses a per-$1,000 factor to translate added coverage into an annual cost estimate for budgeting.

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