It’s not always easy to know how much homeowners insurance you need. Say you have a $100,000 home: your homeowners insurance coverage should also be $100,000, right?
Not quite. There are actually many more factors at play than just the market’s current price on your home, from structure to contents.
The cost to rebuild your home
Nobody has a crystal ball, so it’s best to factor that into your insurance. To calculate this figure, multiply your square footage by the per-square-foot building costs in your area. You should also factor in any additions you have made since initial construction and the specific style of your home.
The cost of adhering to new codes
Depending on when your home was built, you might have to adhere to new codes during a rebuild, which may add to the expense. Adding an endorsement to the policy could help you plan for this.
The cost to replace what’s inside the home
While you can’t cover sentimental value, you can insure the physical contents of your home. Take an inventory of your belongings so that you can plan for the cost of replacement if you ever need to make a claim.
The cost of liabilities
Liability insurance is what will protect you if you ever find yourself in a lawsuit because of your home, whether that’s a broken window or a dodgy porch leading to an accident.
Sound confusing? We can help. Call or email us to figure out the best insurance plan for you.