San Leandro, CA San Mateo, CA Homeowner’s Insurance – Coverage A Explained

 What is Coverage A?  Coverage A is the limit on your policy that would pay to reconstruct your home should it be damaged by a covered cause of loss such as a fire. The square footage of your home is one of the basic factors as local construction costs can vary.  If you have a a generic tract home, the reconstruction cost per square foot will be lower than if your home is large custom structure.  Other factors that should be reviewed are the exterior structure material i.e. Frame, Masonry or Veneer Construction, roofing materials, quality of exterior and interior finishes and more.  While knowing the cost per square foot can be difficult, we can help you with that as there are valuation models that we use.  The cost per square foot can vary tremendously!

Here in California wildfire exposure is a major problem, and since rising costs for Homeowner’s Insurance is on everyone’s radar these days, you may be tempted to reduce your coverage to save money on your premium.  When wildfires occur, reconstruction costs go up even more because contractors are in short supply and materials cost more due to shortages. When comparing options, look to get the highest replacement cost cap that you can – for example, many carriers offer 150% or 200% which means that you have 50-100% more coverage for these situations.

We can help you navigate all your Insurance questions including those concerning Coverage A.