Determining How Much Home Insurance You Need

Determining How Much Home Insurance You Need

how much home insurance do I needIf you're buying a home, then getting homeowners insurance is a no-brainer. Homeowners insurance will help cover the structure of your home, your personal possessions, liability to others and the cost of living expenses if you have to temporarily move out of your home because it is damaged. But there's one important question you may have: How much home insurance do I need?

When answering that question, first consider how much it will cost to rebuild your home. You don’t want to base the cost on how much you paid for your home since the value will change over the years. You don’t want to include the cost of the land either since this isn’t what is being rebuilt. Instead, base how much it would cost to rebuild your home on factors such as local construction costs, square footage, the style of the home, materials, and any improvements you made. Many homeowners choose a replacement cost policy since this will pay for repairs or replacement of your home without a deduction for depreciation.

You may want to get an additional endorsement covering any new building codes that come into play in the future as well so that you don’t lose money having to meet new building codes when replacing or repairing your home. Do an inventory of your possessions to make sure that you have enough coverage.

Are you asking the question “How much home insurance do I need?” These tips will help provide the answer. Contact us at CCW Insurance for more homeowners insurance information and assistance determining the right amount of insurance to cover your home with.

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