Insurance
Dwelling cover
The rebuild cost, which is what the dwelling limit should equal.
The Formula
Dwelling = living area x rebuild cost per square foot
The rebuild cost, which is what the dwelling limit should equal.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| A | Living area | area | Square footage of the home. |
| c | Rebuild cost per sq ft | currency | Local construction cost per square foot. |
What Each Symbol Means
Aarea
Living area
Square footage of the home.
ccurrency
Rebuild cost per sq ft
Local construction cost per square foot.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate homeowners insurance page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Homeowners Insurance, filed under Finance. Every number the guide produces comes from substituting into this one line.