Replacement Cost Dwelling

Replacement Cost for Your Home

Your home is likely to be the most significant purchase you make in your lifetime. Kemper understands that and offers extra protection for your investment.

Replacement Cost Dwelling

When it comes to your home, there are two “values” that matter. They are market value and replacement cost. And, while they both have to do with your home’s value, how the two numbers are arrived at is very different. Therefore, the numbers are very different.

Market Value is the current price for which your home can be bought or sold. Think about similar homes in your neighborhood and what they have recently sold for. This is probably close to your home’s Market Value.

Replacement cost refers to the cost to rebuild your home on its existing lot, built to the same quality and using the same materials. With evolving building codes and escalating costs for construction and materials, replacement cost can be significantly higher than market value.

Your Homeowners policy provides coverage for your Dwelling. The amount you choose for this coverage (Coverage A in Section I on most policies) should reflect the amount that will allow you to rebuild your existing dwelling.

In the event of a total loss to your home, most Homeowners policies will pay up to the amount you selected for your Coverage A to rebuild. That amount may not be sufficient to rebuild your home to its prior specifications.

Kemper's Replacement Cost Dwelling coverage can provide you additional protection to account for fluctuations in the cost of rebuilding your home. Depending on the level of coverage available in your state, when you add Replacement Cost Dwelling to your Home policy and you have a covered loss, Kemper can pay up to 150 percent or more of your home's insured value (the amount you selected for Coverage A), less your policy's deductible amount.

For example, if you have Replacement Cost Dwelling on your Homeowners policy with $250,000 selected as your Coverage A amount and you need to rebuild after a covered loss, because of the additional protection Replacement Cost Dwelling provides, Kemper can pay up to $375,000, minus your deductible, to rebuild your home (250,000 X 1.5).

Replacement Cost Dwelling is available as an endorsement to your Homeowners policy.

What else do I need to know?

Ask your Independent Agent today to see if Kemper's Replacement Cost Dwelling coverage is right for you. If you don't already have an agent, find one now.  

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Kemper Personal and Commercial Lines provides products and services for individuals, families and businesses who want protection for their homes, vehicles and other valuables and sells through an exclusive network of independent agencies.


All statements are subject to the terms, exclusions and conditions of the applicable policy. In all instances current policy contract language prevails. Products, services and discounts referenced herein are not available in all states or in all underwriting companies. Furthermore, the products and prices of our various Kemper business segments differ. Coverage is subject to individual policyholders meeting the applicable underwriting qualifications and state availability. Other terms, conditions and exclusions may apply.