Cover the replacement cost of your home, not the market value or purchase price. A $300,000 home might cost $350,000 to rebuild. Add personal property coverage at 50-75% of dwelling coverage, liability of $300,000-$500,000 minimum, and additional living expenses.
Replacement Cost vs Market Value
Replacement cost is what contractors would charge to rebuild. Market value includes land.
Dwelling Coverage
Should equal estimated rebuild cost. Get a replacement cost estimator from your insurer.
Personal Property
Typically 50-75% of dwelling coverage. Create a home inventory for accurate valuation.
Liability
$300,000-$500,000 minimum. Consider an umbrella policy for additional coverage.