Tips for Making Sure You Get Just the Right Amount of Home Insurance Coverage

How much home insurance do you need? This is a question on a lot of homeowner’s minds. Striking the balance between having enough coverage to protect you but not having too much coverage or paying for forms of coverage you don’t need can be difficult.

But we’re here to help! Here are some useful considerations for making sure you get just the right amount of home insurance coverage.

Your Home’s Rebuild Cost

One of the types of coverage you want to be sure you have enough of on your home insurance policy is dwelling coverage. This applies to the physical structure of your home.

In the event your entire home was destroyed, you’d want to have enough dwelling coverage to include the cost of rebuilding it from scratch. Because the rebuild cost doesn’t tend to include the land the home is on, this number is usually lower than the market price of the home.

If you didn’t have enough dwelling coverage in the event of a major incident affecting the structure of your home, you’d likely be responsible for covering the repair or replacement costs on your own .

Insuring Valuable Items

Home insurance policies include a component known as personal property insurance. This can cover the cost of repairing or replacing your belongings if they’re stolen or damaged by a covered peril.

Personal property insurance has its limits though. For example, your policy might state that jewelry is covered up to $2,500. But what if you buy a $4,000 watch that’s stolen during a home invasion?

To receive enough compensation for the stolen item, you’ll want to either increase your personal property insurance or consider scheduling the item. That means listing that watch specifically on your policy.

When you add scheduled property insurance for an item, you’ll be able to customize the amount of coverage you get for it so you’re not left covering costs on your own.

Personal Liability Insurance

Personal liability insurance is another component of a home insurance policy. In the event you’re found liable for damages that take place to a third-party or their property in your home, this insurance can help cover the cost of legal fees and other damages.

Many basic policies include $100,000 of personal liability insurance, but most homeowners are encouraged to increase this coverage. Due to the costly nature of lawsuits, $100,000 can easily be surpassed.

Are you interested in finding out more about determining how much and what kind of home insurance is right for you? Give Rueter Insurance a call today!