What Is Extended Coverage Homeowners Insurance? 
Different companies and different states have different nomenclature for coverages . What this typically means is limit that coverage extends to another higher limit in the event of a total loss exceeding the Coverage A -LRB- homeowner Dwelling limit -RRB- . If you have a replacement value of say 400,000 on the house , then the maximum that would normally be paid for replacing the house would be $ 400,000 . But setting the value of replacement is not exact science and is also a moving target . If your home is destroyed by a fire it may be possible to rebuild within that 400,000 limit . But suppose the the city you live in is ripped apart by a tornado . Now there could be escalating costs of material and labor . What the extension does is give you an extension to another limit if needed . The extensions are usually sold in percentage increments such as 25 % ,50 % or even 100 % . So , back to the 400,000 coverage on the house . If 25 % extension then the limit of coverage is increased to a maximum of 500,000 -LRB- 400,000 X 1.25 -RRB- I hope that helps . If you live in one of the following states I would be glad to assist you : AZ , CA , MO , TX and GA. -LRB- call 1.866-933-4372 -RRB- otherwise seek out an Independent agent in your area who represents sever companies . Jack Heller , CPCU 