When looking around for a home insurance policy, one of your first questions is likely, “How much homeowners coverage do I need?”

One of the biggest risks you can take is not buying enough home insurance coverage. If you go for lower premiums/less coverage, do you have enough money to rebuild your home and replace your belongings in the event of a fire or other devasting event?  

When it comes to protecting your home and its contents from the unexpected, you want to make sure you have the right coverage. Get the answers to the most common homeowners insurance coverage questions here!

How Much Homeowners Insurance Do I Need? 

You want to get the correct answer to this question to avoid paying for coverage you don’t need but to also ensure that you have adequate coverage in case you need it. 

You want enough homeowners insurance to be able to rebuild the structure of your home, replace any lost belongings, pay rent if you are unable to live in the home, and protect your financial interests if you are liable to others. 

Click here to learn how to get cheap home insurance. Take a simple quiz to get the most competitive insurance quotes in minutes.

Replacement Cost of Your Home 

Consider the square footage of the home. Take that number and multiply it by current local construction costs. Get these costs from a local construction company’s website. 

To double-check the accuracy, use an online calculator to give you a second estimate. You’ll input the square footage and number of rooms to get a replacement estimate. 

An experienced insurance agent can also give you an estimate on the replacement cost.

Of course, remodeled kitchens, rising construction costs, new building codes, and hard-to-replace features are all factors that affect the final replacement cost. 

Calculating the Replacement Cost of Your Personal Property 

Your personal property is defined as your appliances, furniture, clothes, electronics, sports equipment, and even food in the fridge and pantry. The coverage kicks in if your stuff is destroyed, stolen, or vandalized. 

Homeowners often underestimate replacement costs of personal property because it’s accumulated over time. When it comes to replacing everything, the sticker price can be shocking.

Take an inventory of everything you own. Take photos of the more expensive items. If you suffer a huge loss, you’ll have adequate coverage to replace your belongings. 

Homeowner’s Insurance Coverage Questions 

Now that you’ve received an answer to some of your homeowner’s insurance coverage questions, you’ll be able to get the right policy for your situation. Having enough coverage gives you peace of mind in the event where you need to make a claim. 

Be sure to bookmark our site for easy access to our helpful information. With a combined experience of more than four decades in real estate marketing and consulting, we’ll help you make the right decisions when it comes to purchasing, maintaining, and selling a home.