Determining How Much Home Insurance Coverage You Need

You know you need home insurance. However, determining how much home insurance you need can be as complicated as the process of buying a home itself. The good news is at AWARD Insurance Group in Dalton, GA, we make the process of choosing home insurance easy and understandable. 

Replacement Costs

Home insurance coverage limits are often determined by your mortgage, your home’s appraisal value or the amount you purchased your home for. Having a coverage limit significantly higher than the costs to replace your home is a wasted expense. However, not having enough coverage can put you at risk.

The easiest way to determine how much structural coverage you need is to estimate the replacement cost of your home. Check local building costs, and multiply the per sq ft cost by the sq ft of your home. If you have other structures like a garage, barn, or guest house, you should include the costs to replace these as well. 

Other factors to consider are extra costs to bring an older home up to current building codes, and hard to replace elements. If your home has antique doorknobs, they will be more expensive to replace than standard knobs, for example. 

Types of Coverage

A standard homeowner’s policy doesn’t cover everything that can damage your home. You may need a separate policy for floods and earthquakes. You may also need rider policies if you have expensive jewelry or antiques. 

If you need home insurance or aren’t sure that your current coverage is adequate, contact us at AWARD Insurance Group in Dalton, GA. Our agents will explain the homeowner’s policy options and help you select the right coverage for your needs.