How Much Coverage Does your home Need?

How much coverage should you insure your home for? Many folks don't really understand or know what they should insure their home for. Essentially if you called ten insurer's agents you can get 10 different values for what your coverage must be.
I compare it to getting your taxes done. Although the CPA's all use the same tax code it is exactly subjective as to how much you end up paying. Most of the people desire assertive CPA's as a result. Having your insurance agent be assertive on your coverage is not the best recommendation as this typically means losing valuable coverage's.

The excellent news is that most insurance carriers have cost estimators that they use to help the agent get as close as possible when deciding the coverage. The bad news is that each carrier has different criteria for how they identify the final rate. So what do you do?

The rule of thumb is generally between $100 to $120 a square foot. So if your home has two thousand square feet then you must insure it between 200,000 to 240,000 in coverage. Most insurance carriers will usually have a swing of 10-20% that you can increase or decrease your coverage. The main thing you have got to realize is that your policy will only pay replacement cost up to that worth so you want to be sure you are insured properly.
When in doubt, you can always contact some builders to find out what the current cost per square foot is to replace your house. Bear in mind this value is sometimes different than the real estate or market value. In addition the value doesn't include you land worth. If you home burns down or blows away your property will continue to be there to reconstruct upon. I hope this information helps!
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