Determine How Much Dwelling Coverage You Need

• The dwelling coverage should be enough to cover the cost of rebuilding your home if it is destroyed or severely damaged. This amount is not the same as your home’s market value, but rather the cost to rebuild it with current construction costs. Factors to consider include:
  
  • Home’s Age and Size: Older homes or larger homes typically cost more to rebuild.
  • Building Materials: The type of materials used in your home, such as brick, wood, or stucco, affects the rebuild cost.
  • Heating, Electrical, and Plumbing Systems: The age and type of these systems can impact the rebuild cost.
  • Unique Features: Custom or unique features of your home can increase the rebuild cost

 Estimate Other Structures Coverage

• This coverage includes unattached structures like sheds, fences, and detached garages. Typically, this coverage is 10% of your dwelling coverage limit

Calculate Personal Property Coverage

• This coverage protects your personal belongings. You’ll need to estimate the total value of your belongings, which can be 50% to 70% of your dwelling coverage limit. Use a personal property calculator to inventory your items and estimate their replacement cost value (RCV) or actual cash value (ACV)

Determine Loss of Use Coverage

• This coverage covers additional living expenses if your home becomes uninhabitable due to a covered event. Typically, this coverage is 20% of your dwelling coverage limit

Choose Your Liability and Medical Payments Coverage

• Liability coverage protects you if you are found liable for someone else’s injuries or property damage. Typical limits start at $100,000 but can be higher depending on your needs.
• Medical payments coverage pays for medical bills if someone is injured on your property, regardless of fault. This coverage usually has a low limit, between $1,000 and $5,000