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This week, we're talking about homeowners coverage. 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 simple answer and you're independent agent can do the rest. Watch:
How to calculate a Home Insurance estimate
More specifically, 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. You’ll calculate costs the same way for any outbuildings.
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.
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 items might require additional coverage.
