How Do You Calculate House Value For Insurance?
How much insurance is enough for your home? When you buy home insurance, there are two things to keep in mind. One, you should insure your home for the cost of rebuilding it after a disaster, not the amount of money you could get if you sold it. Two, homeowner’s insurance covers the contents of your home as well as the building itself. Therefore, the total home value you use as a guideline for insurance should be the cost of rebuilding your home plus the cost of replacing the contents in it. Inventory your home’s contents. What do you own that you would need your insurance to replace in case of disaster? What is the value of those items? You should make a list of the items and compile proof you may need in case of a claim, such as receipts for purchase and photos of the items. This job can be a big one, so consider using a software program, such as KnowYourStuff.org, to help you manage the process and organize your list (see Resources). Once your inventory is complete, add up the total
