You need to know how much House insurance coverage to
purchase before starting shopping for an insurance policy. How much home
insurance coverage to buy depends on the worth of your house and your property.
Home insurance coverage needs to be able to replace your property in case of a
damage , that’s why you need to assess the value of what you want to protect
before you know how much homeowner insurance to buy.
The structure
You need sufficient House
insurance to cover the cost of rebuilding your house at current
construction price. Don’t add the cost of the land. And don’t base your
rebuilding costs on the price you paid for your house.
Factors that will affect the premium of rebuilding your
house: Location, neighborhood, crime, fire safeguards; condition, materials and
age of the home; deductible amount
Replacement cost policies
Coverage like this will pay the true retail cost of
replacing lost, ruined or stolen possessions. Replacement cost will always save
you in the long run.
House insurance
Your personal possessions
Usually most House insurance companies calculate how much
they will pay for personal property to be 50% to 70% of your overall coverage.
You would be surprised how quickly your potential losses grow when you
calculate the value of every single item in your home.
Additional living expenses after a disaster
Additional living expenses coverage makes payment for
temporary housing costs while your home is getting fixed. Swelling suggests
homeowners work with a local real estate agent to find a rental house and get
approval from the insurer then signing the lease.
It covers hotel bills, restaurant meals and other living
expenses incurred while your home is being rebuilt.
Value of unique / new features in your home such as
additions, renovations, special materials, etc.
Have you renovated your house, remodelled your living room
or bedroom, or added valuable materials, like a marble floor or island?
It’s necessary to include the value of those updates and
materials in your House insurance coverage estimation, since it may cost more
to replace or rebuild those features made with new materials or specialized
labor.
Source: [http://blogs.rediff.com/homeinsurance/2016/06/30/how-much-house-insurance-do-you-need/]
