There are a few key things you need to consider when you’re deciding your home insurance coverage amount.
The building or structure. You need to have enough insurance to repair or replace your home in case of loss or damage caused by events included in your policy (like fire, windstorm or earthquake). Be sure to base this amount on an up-to-date valuation of your property. If you’ve recently renovated or added a pool, for example, you’ll need to let your insurer know so it’s covered should something happen.
Many providers (like Sonnet) offer
Liability. Most home policies start at a minimum of $1,000,000
Your personal belongings (or contents). Take an inventory of what you have in your home and set your contents amount accordingly. This should include everything from your TV to your sock drawer. If something happens and you lose your home, you’ll need even the smallest items (like your socks!) to be replaced. And don’t forget about any stuff you have in storage.
When it comes to your valuables, insurers usually have maximum dollar amounts that they’ll pay out if
Optional coverage. Depending on the type of home you live in and your location, you might need more coverage.
If you’re unsure if you have enough home insurance, always speak to an expert.