Review your home insurance policy ASAP.

One of the most critical coverages on your homeowners insurance policy is Dwelling Coverage (Coverage A).

We quote hundreds of homes on Martha’s Vineyard and many are underinsured; this means that the Dwelling Coverage on the policy is not enough to rebuild the home in the event of a total loss. The number one recommendation we find ourselves making is to increase coverage A. Here’s a quick way to indicate if your current insurance policy might be underinsuring your home on Martha’s Vineyard.

image of sample Martha's Vineyard home insurance policy

A sample policy we received from a prospective client for 1,500 square foot home in Oak Bluffs.

Divide Coverage A by the approximate square feet.

$394,000/1,500 sq ft = $262.66 reconstruction cost/Sq ft.

This is an oversimplification of the very diverse and complex characteristics on the island, but if your Martha’s Vineyard Home Insurance Policy comes out to less than $450/sq. ft., then it is highly likely you are underinsured.

In general, $450-650 per square foot is known as the cost for basic construction (modular or very simple design with basic grade materials). Since the start of the pandemic in 2020, we have seen demand and prices surge driving the cost of construction up.

Building costs can vary drastically by location throughout Martha’s Vineyard. A “Gingerbread” house, houses with limited access deep in the woods, a house on bustling North Water street in Edgartown, all might be more accurately assessed at $1000 per square foot or higher.

Make an appointment with us and we’d be happy to discuss your unique Martha’s Vineyard home insurance needs today.