Get The Home Insurance Coverage You Need
How much is the right amount?
It's the question of the day: How much�home insurance coverage�do you need on your home? The answer is tricky, and many people get it wrong.
Homeowners often mistakenly believe that they need enough coverage to match the market value of their homes. But remember, market value includes the land, the desirability of the location, and other factors. You'll still have the land, location, etc., if a fire, wind, or another covered peril destroys the home.
Your home insurance dwelling coverage actually needs to be set at an amount that will cover rebuilding the house if it's destroyed by one of those covered perils.
So how much would it cost to replace your home in the event of a total loss? Click here to use our home insurance calculator. This helpful tool will show you how to determine your home insurance dwelling coverage based on square footage and local construction costs.
It's important to get the dwelling coverage number right. Some other types of coverage included in your homeowners insurance (other structures, contents) are based on percentages of your dwelling coverage. For example, some of these are typically as follows:
Other Structures: 10% of dwelling coverage.
Contents: 50%-70% of dwelling coverage.
Loss of Use: 20% of dwelling coverage.
The other two coverages typically included in standard home insurance personal liability protection and medical payments protection - aren't tied to the dwelling coverage limit. Liability coverage starts with a $100,000 limit per occurrence, though it can be increased, and medical payments starts at $1,000 and can be increased.
If you're still not sure about something relating to home insurance, don't hesitate to visit our FAQs. You also can call an agent licensed in your state at 1-833-244-3465 to get the answer to questions or get started on a free home insurance quote. Do it today!