Why is the Insurance Value on My Kansas Home so High?

Why is the Insurance Value on My Kansas Home so High?



You don’t see the words “Dwelling” or “Coverage A” very often. Add to that all insurance jargon and subtle differences between insurance carriers and the average homebuyer gets lost.

At Panzer Insurance we like to keep things simple.

So, what is Coverage A, Dwelling Amount, or Rebuild Cost Estimate? This is the cost insurance carriers estimate it would take to rebuild your home from the ground up exactly as it stands now. This is calculated to ensure there is enough coverage to make you whole again if the home was a total loss.

What is a total loss?

It’s the worst that could happen. Your home burns to the ground, a tornado carries your home to Oz. It’s the destruction or partial destruction of your home.

Now you know the basics of the dwelling amount and total loss but how do insurance company’s figure out how much it costs to rebuild a home?

 There are several factors that go into estimating the rebuild cost of your home such as:

  • Location such as Great Bend, Ellinwood, Larned, Hoisington, Ellsworth
  • Size of Your Home
  • Age of Your Home
  • Safety Features Like Deadbolts, Smoke Detectors, Security System
  • Type of Foundation
  • Quality of the Interior and Renovations
  • Number of Bathrooms

And much more!

Dwelling amount or Coverage A is what the insurance company estimates it will cost to rebuild your home from the ground up. To build your home back as it was before the total loss.

An accurate dwelling amount is a very important part of your homeowners insurance policy. If your agent doesn’t explain this to you its time for a new agent.


You won’t have to worry about that with us. We own homes too!