{"id":4942,"date":"2026-03-24T01:36:59","date_gmt":"2026-03-24T01:36:59","guid":{"rendered":"https:\/\/ft365.org\/index.php\/2026\/03\/24\/when-home-insurance-falls-short-on-rebuild-costs-bankrate\/"},"modified":"2026-03-24T01:36:59","modified_gmt":"2026-03-24T01:36:59","slug":"when-home-insurance-falls-short-on-rebuild-costs-bankrate","status":"publish","type":"post","link":"https:\/\/ft365.org\/index.php\/2026\/03\/24\/when-home-insurance-falls-short-on-rebuild-costs-bankrate\/","title":{"rendered":"When home insurance falls short on rebuild costs | Bankrate"},"content":{"rendered":"
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Confusing policy language, rising construction costs and lengthy claim resolution timelines can leave families scrambling \u2014 even when they thought they were fully covered.<\/h3>\n

\u201cIt looks like a dollhouse,\u201d says Emily Gershon, about her Maryland home. \u201cFrom the front, it looks fine. But then the whole back of the house and the roof are just gone.\u201d\u00a0<\/p>\n

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On a crisp October day, Gershon and her husband were clearing limbs and burning leaves \u2014 a routine fall chore across the Northeast. They weren\u2019t reckless, says Gershon. \u201cWe\u2019re the people who look up the county codes ahead of time. Is there a certain time of year? Does it have to be a specific distance from the house? What does the ground need to be like?\u201d<\/p>\n

As they worked, a small fire scorched the side of their home, which they were able to put out quickly. At first, the damage appeared minimal. But after extinguishing the flames, they looked up and saw smoke billowing from the chimney.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

The fire chief called it a \u201cfreak accident.\u201d Somehow, embers had gotten caught between the vinyl siding and sheathing of the house, spreading the fire across the attic.\u00a0<\/p>\n

Gershon and her husband were able to get their two young children to safety, but in the weeks that followed, they faced a different kind of challenge: a massive chasm between their insurance policy\u2019s promises and the reality of rebuilding.<\/p>\n

When coverage and costs diverge<\/h2>\n

After the fire, Gershon and her husband began the process of compiling estimates to rebuild her home. The local fire department estimated the damage at roughly $750,000. An architect\u2019s feasibility study estimated a rebuild cost between $600,000 and $900,000. The insurance company\u2019s number? Approximately $258,000 in actual cash value, with a replacement cost value in the low $300,000s.\u00a0<\/p>\n

For Gershon, the discrepancy was jarring. Her homeowners insurance policy listed $500,000 in dwelling coverage and a 25% extended coverage endorsement.\u00a0<\/p>\n

Seeking clarity, the Gershons hired a seasoned restoration contractor \u2014 a former insurance agent with decades of experience. His initial estimate for the basement, first floor, roof and exterior totaled about $383,000. But because his estimate excluded the second floor, screened-in porch and landscaping, that sum still wouldn\u2019t fully restore the home to its pre-loss condition.<\/p>\n

As of this writing, Gerson\u2019s claim remains ongoing \u2014 and it\u2019s possible these valuations may shift as the process continues. But the question remains: How can discrepancies on this scale emerge, even when homeowners believe they\u2019ve done everything right?<\/p>\n

\u201cWhen you look at the policy, it feels like the coverage is there,\u201d she says. \u201cBut then you get a number that doesn\u2019t reflect what it actually costs to rebuild, and it just doesn\u2019t make sense.<\/p>\n

Emily Gershon took to social media for answers but found other homeowners grappling with similar claim disputes.<\/em><\/figcaption><\/figure>\n

How replacement cost coverage can go wrong<\/h2>\n

In situations like the Gershons\u2019, coverage conflicts can arise from a combination of factors \u2014 from differences in rebuild estimates to policy limitations, valuation methods and claim procedures.\u00a0<\/p>\n

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