What Is Extended Home Insurance Coverage? 
Extended Home Insurance coverage provides an additional amount of funds in the case that the estimated cost to rebuild a home is more than what the Coverage A limits allow for . This extra coverage would come in handy during a large disaster affecting several properties at the same time in one area . In this situation , the cost of materials and labor may jump quickly due to the high demand as homeowners want their properties rebuilt quickly . Since this is not something that can be predicted , some insurance policies allow for this extra coverage . In most cases , 125 % extended coverage is included in the premium price , but you can also select 150 % extended coverage as well . And , since this coverage does not increase your premium by the same amount it increases your Coverage A limits , it is a very affordable addition and highly recommended . 