How much insurance do I need for my home?
Standard homeowners policies provide coverage for disasters such as damage due to fire, lightning, hail and explosions. Homeowners who live in areas where there is risk of flood will need separate insurance coverage for those disasters, as well. In every case, you’ll want the limits on your policy to be high enough to cover the cost of rebuilding your home in the event of a total loss.
The price you paid for your home—or the current market price—may be more or less than the cost to rebuild. And if the limit of your insurance policy is based on your mortgage (as some banks require), it may not adequately cover the cost of rebuilding.
While your insurer will provide a recommended coverage limit for the structure of your home, it’s a good idea to educate yourself as well.
Home Insurance Information
Home Insurance Guide
This guide includes fundamental information you may
need to prepare for a conversation with your insurance
• Key homeowners insurance definitions.
• Factors to consider when evaluating your insurance
• Determining a coverage amount that works for you.
• What’s included in a standard policy and other
coverage options that might be available.
• How to save money with annual insurance check-ups.