How much house insurance do you need?

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/]