When shopping for homeowners insurance, one of the most important things to consider is how much coverage you need. Many people don’t know how to determine how much coverage they need, which can lead to them buying too little or too much insurance. Here we discuss some tips on figuring out how much coverage you need for your home.
What’s the Value of Your Home?
The first thing you need to consider when determining how much homeowners insurance coverage you need is the value of your home. How much would it cost to replace your home if it were completely destroyed? This is the amount of coverage you should have for your dwelling.
Some people mistakenly believe their home’s market value is the same as its replacement value. However, these two values can be very different. The market value of your home is how much it would cost on the market. The replacement value is the amount it would cost to re-build your home from scratch.
Once you have the replacement value of your home, you’ll need to consider the amount of coverage you want for your personal belongings. Most homeowners insurance policies will cover up to 50% of the dwelling’s value for personal belongings.
What’s the Risk of Flooding or Other Natural Disasters in Your Area?
Another factor to consider when determining how much homeowners insurance coverage you need is the risk of flooding or other natural disasters in your area. If you live in an area prone to flooding or earthquakes, you’ll need to purchase extra insurance in addition to your regular homeowner’s insurance policy. If you’re not sure whether or not you need flood insurance, get in touch with Bridgeway Insurance Group in Montgomery, AL for consultation.
Contact Us Today
The best way to know how much coverage you need for your home is to speak with one of our experienced insurance agents at Bridgeway Insurance Group in Montgomery, AL. We can help you determine the right amount of coverage for your specific needs and situation. Give us a call today.