Determine How Much It Would Cost to Rebuild Your Home
Having homeowners insurance helps cover costs from damage due to things like fire, lightning, hail, windstorms — among other events. And if you live in an area that has a high risk of flooding or earthquakes, you’ll want to make sure you have insurance for those, too.
Basically, to estimate how much homeowners insurance you need, consider the cost to rebuild your home. A number of factors will impact the cost to rebuild: Things like the style of your home (e.g. ranch, colonial), type of materials used to build the structure (e.g. brick, stone, frame), type of roof, and other special features of the home (e.g. fireplaces, exterior trim) can all impact the cost to rebuild your home — which may make it different than the original price you paid, the fair market price or the home’s assessed value. Connect with your insurance agent — they’ll help you calculate how much coverage you’ll need to rebuild your home.