How Much Home Insurance Do You Really Need?
How Much Home Insurance Do You Really Need? Having home insurance is a smart move — but overpaying for unnecessary coverage? Not so smart. Let’s break down how much coverage you actually need, based on your home’s value, location, and risk. 🏠 What Does Home Insurance Cover? Dwelling coverage – protects the structure of your home Personal property – covers your belongings Liability protection – covers injury lawsuits Loss of use – pays for living elsewhere during repairs Medical payments – for injuries to guests on your property 📏 How to Calculate the Right Amount ✅ 1. Dwelling Coverage (Most Important) Use the rebuild cost , not market price. Rebuild cost = square footage × local construction cost Example: 2,000 sq ft × $150 = $300,000 💡 Tip: Update this yearly, especially if construction prices rise. ✅ 2. Personal Property Usually 50–70% of your dwelling coverage. $300,000 × 50% = $150,000 personal items coverage Take inventory: e...