Ok, so you’re a little frustrated with the value of your house. The News tells you your house is worth 25% less. If you get your tax assessment, it has another value. Then your mortgage company appraises the home at a different amount.
So how much Homeowners Insurance should you carry? Let’s look at what you are really buying.
You are paying the Insurance company to rebuild your house in case of a claim. If you had a loss today, you would want them to rebuild your house with the same square footage and features that it currently has. You must realize that all the materials needed to rebuild your home have increased in cost. The $20.00 ply board from 10 years ago now costs $40.00.
Don’t get caught being under-insured. You need to always carry enough insurance to fully rebuild your home.
A quick guide to see if you have the proper amount of coverage might be to call a local builder with your square footage and ask how much he would charge to build your home. A general guide for a basic house is $125/ Square ft. That means if you have a 1500 Square ft Rancher, your Minimum coverage should be (1500 x 125=$187,500).
If you aren’t sure what you have, call us for a free review at (717) 764-2024.
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