Home insurance by the numbers
Coaching tip: Ask your agent for a thorough review of all these coverages.
There are three numbers for every home. There is the market cost, the property tax appraisal amount, and the replacement cost. The replacement cost is the number that matters. You're not looking for the market cost of the home, you want what it will take to rebuild the home.
Make sure that all of the limits in your homeowner’s policy are where they need to be:
Restoration costs are often more expensive than new construction costs for the same square footage. Ask your agent to provide a replacement cost estimate based on the size and characteristics of your home.
Do you have enough? If you have some high dollar items like a grand piano, it may not leave enough for mundane items like towels, sheets, and socks.
Make sure you opt for higher limits if you have net worth that you want to protect.
If you are proud of your new 60’x40′ shop, make sure that the policy limits have been increased to provide coverage. As a baseline, policies generally offer 10% of the coverage on the home for coverage of out buildings (detached structures).
This is money available if people outside your household are injured on your property. Ask for elevated limits. This coverage is very inexpensive.
Does your company have a limit on loss of use? This is what the company will pay if you cannot live in your home.
