What Is Extended Coverage Homeowners Insurance? 
Extended coverage is provided IN ADDITION to your Coverage A limit . Let me explain : Assume your homeowners policy covers your house for $ 100,000 . A storm comes through and completely wipes out your house . While you are in the process of rebuilding , you find out from the contractor that it 's actually going to take $ 110,000 to completely rebuild . If you have extended coverage on your policy , it will cover the extra cost of $ 10,000 . Typical homeowners policies will have built in to the price additionally 25 % . But ask your agent specifically what that policy has , as all companies are different . 