When you are calculating the cost of your home insurance, square footage of your home is needed to estimate how much dwelling coverage you may need. Dwelling coverage is the amount your insurance company would pay you to replace your home in the event of a covered loss. It is also the basis for which all of your other homeowner's coverage is calculated.

A homeowners policy can be a single policy or a combination of different policies related to the property, contents of the property, loss of its use, or even the loss of other possessions by the homeowner. It may also include the liability insurance for accidents happening at the home. This can be in addition to the 11 perils on HO1. The coverage is usually a "named perils" policy, which lists the events that would be covered.

A homeowners insurance calculator gives and estimates you an idea how much insurance you should buy to protect the structure of your home against damage from fire, windstorm or other named perils. 11 listed perils are generally included in any such policy but they should always be specifically mentioned as well.

Some of these perils can be lightening, fire, vandalism, theft, civil commotion, glass breakage etc. Floods and earthquakes can be the exceptions. The computations performed by homeowner's insurance calculator are based on information and assumptions provided by you regarding your goals, expectations and financial situation.

You should always remember that it does not take into account the variations or deviations in these assumptions. For eg – Factors like future interest rates, inflation or investment returns can affect these assumptions. In entering your assumptions, you should keep in mind that higher rates of return generally involve a higher degree of risk, including the risk of loss of principal invested.

Actual results or inputs may be higher or lower than the inputs used or results displayed in hypothetical calculations, and are likely to vary over time. The more accurate information you provide, the more accurate results you will get. Also, the past performance can not guarantee the results in future. A homeowners insurance calculator should be mainly used for informational purposes and not in any kind of legal or financial way.

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