Most homeowners in Greensburg insure their house for what they paid for it. That is the wrong number, and in Westmoreland County the gap has widened considerably.
Market value is not the number that matters
Your policy should be built on replacement cost: what it would take to rebuild your home, at today’s labor and material prices, on the lot you already own.
Market value includes the land. Rebuilding does not. A home that sells for $250,000 in Greensburg may cost more than that to rebuild, because the sale price reflects location and the rebuild price reflects lumber, roofing, drywall, and the availability of contractors after a bad storm season.
Older homes cost more to rebuild than to buy
This is the pattern we see most often in Westmoreland County. Much of our housing stock is older, with plaster walls, real wood trim, slate or tile roofs, and framing that no longer matches modern dimensions. Insuring a hundred-year-old home for its sale price almost guarantees a shortfall.
Two endorsements matter here:
- Extended or guaranteed replacement cost adds a cushion above your stated dwelling limit, typically 25 to 50 percent, for the case where rebuilding costs run over.
- Ordinance or law coverage pays the extra cost of rebuilding to current building code. If your home predates modern electrical, insulation, or egress requirements, code compliance is a real cost that a basic policy may not cover.
The four limits to check on your declarations page
- Dwelling (Coverage A). The rebuild cost of the structure.
- Other structures (Coverage B). Usually ten percent of the dwelling limit. Detached garages, sheds, and fences. If you have a large detached garage or a pole barn, ten percent is often short.
- Personal property (Coverage C). Typically 50 to 70 percent of the dwelling limit. Check whether it pays replacement cost or actual cash value. Actual cash value subtracts depreciation, and the difference on a ten-year-old furnace or roof is significant.
- Loss of use (Coverage D). Pays for somewhere to live while your home is repaired. After a serious fire, that can mean many months.
Liability is the limit people forget
Standard policies often carry $100,000 or $300,000 of personal liability. That covers the guest who falls on your steps, the dog bite, the tree that lands on a neighbour’s car. It is inexpensive to raise, and an umbrella policy above it is one of the best values in personal insurance.
What is not covered
A standard homeowners policy in Pennsylvania does not cover flood, and usually treats sewer or drain backup as an add-on rather than a default. Both matter in our area, where older municipal systems and heavy rain do not always agree.
A simple annual review
Once a year, ask three questions. Have I renovated, finished a basement, or added a structure? Has the cost of local construction changed? Are my liability limits still sensible given what I now own? If any answer is yes, the policy should move with it.
How to find your real replacement cost
Carriers use replacement cost estimators that account for square footage, construction type, roof material, number of bathrooms, and finish quality. The estimate is only as good as the information in it. If your carrier still has the house recorded as it was when you bought it, the number is stale.
Tell your agent about anything that changed the structure: a finished basement, an addition, upgraded kitchens or baths, a new roof, replaced windows, or a converted attic. These raise rebuild cost and are the most common reason a home ends up underinsured.
Common questions
Does homeowners insurance cover a roof replacement?
It covers roof damage from a covered peril such as wind or hail. It does not cover wear, age, or deterioration. Many carriers now settle older roofs on an actual cash value basis, meaning depreciation is subtracted. Check which basis your policy uses, because on a twenty year old roof the difference can be most of the cost.
What is ordinance or law coverage?
It pays the additional cost of rebuilding to current building codes. If your Greensburg home was built before modern electrical, insulation, or stair and egress requirements, a rebuild must meet today’s code even though your policy only insured what stood there. This endorsement covers that gap.
Should I raise my deductible?
Often yes, if you can comfortably absorb it. Moving from $500 to $1,000 or $2,500 lowers premium and discourages small claims, which protects your claims history. The deductible should be an amount you could write a cheque for tomorrow.
Does my policy cover water in the basement?
It depends on the source. A burst pipe is generally covered. Groundwater seeping through a foundation wall is generally not. Sewer or drain backup is usually an endorsement you must add. Given how many homes here have finished lower levels, this is worth confirming specifically.
Are my valuables fully covered?
Standard policies cap certain categories: jewellery, silverware, firearms, and collectibles typically have internal sub-limits well below their real value. Scheduling those items individually removes the cap and usually removes the deductible too.
Talk to a local agent
McDowell Associates has helped Greensburg families and businesses since 1900. We are an independent agency, so we compare carriers instead of selling one company’s product. Call (724) 834-2350, send us a message, or start a quote below.
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This article is general information, not legal or coverage advice. Coverage terms vary by policy and carrier. Talk with a licensed agent about your own situation.
