Your home means a lot to you. Despite your heavy investment in your home, it’s also a place where you have many memories. Your home holds sentimental value to you, so you should do everything possible to safeguard your beloved home.
One way of protecting your home is to invest in home insurance. While home insurance is a wise investment, you must buy a sufficient amount to give you much-needed protection. Not sure how much home insurance you need? Please talk to eAdvisorPro Property & Casualty LLC. But before then, here is a brief guide to help you determine the amount of home insurance needed.
How much dwelling insurance is enough?
If you want to determine the amount of dwelling insurance required, assume the worst-case scenario. Imagine a fire has consumed your home. How much would it cost you to rebuild your house from scratch? This should be the value used to insure your home.
The "replacement cost" value takes care of the local building costs. This means you will be compensated for your home’s value today. The replacement cost saves you out-of-pocket expenses when rebuilding or replacing your home.
How much content coverage do I need?
Like dwelling coverage, assume the worst-case scenario when determining the amount of contents coverage required. Always consider a value that can replace your entire assets. For instance, your home insurance should be sufficient to replace your assets when lost to a fire, flooding, etc. Maintaining a home inventory is the best way to ensure everything in your possession is covered.
How much liability coverage do I need?
This is usually tricky because you never know the number and extent of liability claims you will face. As a rule of thumb, you should hold liability coverage exceeding your assets. We usually recommend liability coverage of $300,000 but if you need additional coverage, consider umbrella insurance.
Home insurance in Florida
Still unsure about the amount of home insurance you need? Please get in touch with eAdvisorPro Property & Casualty LLC for personalized advice.