How Much Home Insurance Coverage Do I Need?

The right amount of coverage depends on a few key factors specific to your home, not a one-size-fits-all number.

Start with rebuild cost, not market value

Your home's market value (what it would sell for) and its rebuild cost (what it would cost to reconstruct it) are different numbers. Dwelling coverage should be based on rebuild cost, which factors in local construction and labor prices.

Account for your personal belongings

Personal property coverage is often set as a percentage of your dwelling coverage, but if you own higher-value items, it's worth confirming the limit actually matches what you'd need to replace everything.

Consider your liability exposure

If you have significant assets to protect, or things like a pool or trampoline that increase liability risk, a higher liability limit, or an umbrella policy, may be worth discussing with an agent.

Revisit coverage after major changes

• Renovations or additions to your home
• Major purchases (jewelry, electronics, art)
• Changes in local construction costs

A licensed agent can walk through your specific home and help you land on coverage limits that make sense, rather than guessing.