How Much Home Insurance Do You Really Need?

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If you are a first time home buyer you likely have a lot of questions and concerns. The financial investment of buying a home is the largest one that you will ever make so you want to ensure that it is properly protected. In many states, a proper home insurance policy is the law and a prerequisite to getting the proper financing.

So, how much insurance is right for you and your home? The simple answer is that more is usually better. When you consider the amount of the loss, emotional and financial, that can occur in a disastrous situation it’s better to be protected with enough coverage. 

Your home insurance policy will be particular to your needs. You may need flood coverage depending on your geography or, you might need to add an additional rider to cover your home from damage from wildfires. Talk to a professional insurance broker to determine what kind of home insurance policy is the best fit for your home and family.

Dwelling Coverage

Your dwelling policy is the basis of your home insurance. You should have enough coverage to equal the replacement costs of your entire home. The price for full reconstruction and outfitting of your home should be the starting figure for your home insurance coverage. Find out the market value of your home and talk to a real estate appraiser to help you calculate how much coverage you will need.

Personal Property

While your dwelling coverage will protect the structure of your home, your personal property policy will protect all of your personal property. This includes your furniture, clothing, decor items and anything else of value in your home.

It’s a good idea to do a full inventory of all of your belongings prior to setting a limit on your personal property coverage. Most people don’t realize the individual value of many of their belongings and end up not getting enough coverage to replace everything when it’s lost.


Depending on where you live in the country it may be mandatory to add flood insurance onto your home insurance policy. In areas along the coast or that sit beneath sea level, a flood rider on your policy can save you a fortune when the water starts to rise. 


If anyone is ever injured on your property you will be glad that you have a liability policy included in your coverage. This policy should be no less than $100,000 to adequately protect you from any legal or medical costs that can come from an accident.

Home insurance is a necessary expense for all homeowners. Don’t underestimate the importance of having enough basic coverage policies. You may never have to make a claim on your insurance if you are lucky but, having the right protection for your home and family should always be a priority. Talk to a broker today about what kind of policy will best fit your needs. When it comes to home insurance you can never be too protected. Consider your needs and choose the right policy for your home.