How Much Home Insurance Do I Need?

How Much Home Insurance Do I Need?

July 16, 2020

Home Insurance

Home insurance protects your home and belongings in case disaster occurs. But how much home insurance should you get? You will need enough to be able to rebuild the structure of your home, replace belongings, defray costs if you cannot live in the home, and protect your financial assets. Overall, you want the limits on your policy to be high enough to cover the cost of rebuilding the home.

Most home insurance policies provide coverage for disasters related to fires, hail, explosions, and lightning. If you live in an area that is prone to earthquakes, flooding, and hurricanes, you will need additional coverage for those disasters, as well.

Your insurer or insurer broker, like our team at Thomas & Associates, can recommend a coverage limit for the structure of your home. If you’re curious about a quick estimate on how much insurance you will need, multiply the square footage of your home by per-square-foot building costs in the local area. Local real estate agents, builders, or our insurance experts can help you figure out construction costs in your area.

If you’re concerned that your home isn’t up to current building codes, you can add an endorsement to your home insurance policy (ordinance or law), which will pay a specified amount toward bringing your house up to code during a covered repair.

If you own an older home, you may have to buy a modified replacement cost policy, which will pay for repairs using today’s building materials and construction techniques.

If you plan to live in your home for a while, you may want to add an inflation guard clause to your policy, since inflation can impact rebuilding costs and this guard adjusts the dwelling limit to reflect current costs when you renew your home insurance.

If you live in an area prone to hurricanes, earthquakes, or tornados, you may want to add a guaranteed replacement cost policy to your home insurance, which will allow you to pay whatever it costs to rebuild your home before the disaster hits and not after construction costs rose due to the demand from the disaster.

When it comes to your belongings, most home insurance policies cover about 50 to 70 percent of the insurance on your dwelling, which may not be enough for some people. To figure out what coverage you need for your belongings, take a home inventory. Then, think about if you want to insure the belongings for actual cash value or for replacement costs.

The price of replacement cost coverage is about 10 percent more but is considered worth it in the long run. Our home insurance professionals can help you figure out and decide if you need more coverage based on your possessions.

If you own expensive items (jewelry, collectibles, silverware, etc.), you may need a personal property floater or endorsement, which allows you to insure valuables individually or as a collection.

If you can’t live in your home due to an insured disaster, additional living expenses (ALE) will cover the additional costs of temporarily living elsewhere (hotel and restaurant bills and other living expenses) until your home is fixed.

Home insurance also comes with liability insurance, which protects you against lawsuits from bodily injury or property damage that you, your family, or pets cause to other people. Overall, it is recommended to purchase at least $300,000 to $500,000 worth of liability coverage.

You may also want to consider adding an umbrella or excess liability policy, which provides coverage beyond your standard home liability policy limits. These policies start to pay after you use up the liability insurance on your standard home insurance policy.

As your local Jacksonville, Florida Farmers agency, our team at Thomas & Associates is dedicated to help you through all stages of the home insurance process, from finding a policy to reviewing your changing needs year to year, we want to be your trusted insurance advisors.

We will help you get the proper amount of home insurance coverage, no two people’s life situations are the same, so we specifically customize home insurance plans to your needs and budget.

Get Home Insurance with a Broker in Jacksonville, Florida

It’s essential to get the proper home insurance coverage so you will be protected. However, you can always add to and increase your home insurance coverage as things change in your home or life. You want to choose your home insurance plan based on your budget, needs, location, belongings, and more.

The home insurance plan in Jacksonville that is “right” for you is the one that best fits your needs and budget. It’s our job to help you find the one that makes the best sense for your home and life.

At Thomas & Associates, we are one of the first agencies to bring Farmers ® to Florida. We are here to serve you as your local Farmers ® agents and provide you with the best property/home insurance coverage that you need to stay protected.

If you have professional home insurance brokers working with you, everything will be explained to you in a clear, concise manner. If you’re thinking about purchasing home insurance, our certified agent brokers at Thomas & Associates insurance agency in Jacksonville, Florida, can help you get the best plan.

We will get you a plan that is affordable and gives you the proper coverage. Let us help you find the right home insurance plan.

Contact us for more information and to get a quote today! To work with our agents or learn more, click our Jacksonville page or call 904-730-3900.


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