homeowners insurance coverage amount
As a homeowner much coverage do I need?
I understand that in the worst case, my landlord's policy covers the reconstruction my home in case of fire, flood or other disaster destroyed completely. I have been getting conflicting answers on the amount of coverage that must be covered for reconstruction. It is the fair market value of the house? It is the cost of rebuilding? Is the amount of my loan? I understand that the bank would like at least cover the loan amount, but really need to be covered by the market value? The cost of reconstruction will be lower. How I determine that amount. My current insurance company, bumps that the amount of coverage each year on the basis of some publications Boeckh Code Construction Index, I suppose, show that the value of my home has increased. Thank you very much for any help.
This is the best way to know how much coverage you need: Measure the square footage of your home. Length x Width x # of floors. Then call 3 local general contractors and ask how much they charge per square foot to build a house. Taking the average of the three and multiply the number of dollars for his square feet. This gives the replacement cost. You will need 15 to 20% more for the debris removal.
