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Do you ever wonder how to know how much home insurance you need? You want to be sure you're covered for the worst-case scenario, but you also want to ensure you're not paying for more than you need. We've got a basic answer and you're independent agent can do the rest. It's important to annually review your coverage with your local insurance advisor. Consider any changes to your home, needed repairs and maintenance, especially to big ticket items, like your roof, and access the need to specific coverage for perils that are excluded from your standard home insurance policy.
Here are more details needed to estimate how much homeowners insurance coverage you need.
Multiply the square footage of the home by the local building costs per square foot in your part of Virginia. For example, if your home is 2,500 square feet and local building costs average $100 per square foot, the cost to rebuild your home would be about $250,000. A local insurance agent should be able to help determine costs in your area. It's important to consider ACV vs replacement value coverage. You’ll calculate costs the same way for any outbuildings on your property.
Next, take an inventory of all your belongings with an estimated value. Take photos or videos to provide a visual record. Note where and when you purchased things on your home inventory. This is especially important for big-ticket items. You may even want to have them professionally appraised. This will not only provide a record but also help determine how much home insurance coverage you need for the contents of your home.
According to the III, most homeowners insurance policies cover your belongings at a rate of about 50% to 70% of what your home is insured for. That means if your home is insured for $400,000, you can expect to be reimbursed for $200,000 to $280,000 for furniture, clothing, and other things. Some high value items might require additional coverage by getting a policy rider or endorsement.
Learn more about homeowners insurance in Virginia >
THE NORTHERN NECK INSURANCE INTEGRITY PROMISE — We pledge to provide straight talk and good counsel from our NNINS Virginia insurance experts through our blog. While we hope you find this to be a helpful source of information, it does not replace the guidance of a licensed insurance professional, nor does it modify the terms of your Northern Neck Insurance policy in any way. All insurance products are governed by the terms in the applicable insurance policy.