How much should i insure my house for?
Please take the time to sit down with a local agent who can calculate the cost to remove the debris & rebuild your home based on the square footage and local labor and building supply costs. Most agents have the software available to help you determine this as accurately as possible. If this figure is not accurate and you are underinsured at the time of a loss, you will be penalized by the same percentage that you are underinsured. Bear in mind that the figure you are quoting of $185,000 is based on market value and insurance companies use cost of construction not market value when adjusting a loss. Your cost to re-build might even end up being higher than your purchase price! In terms of your personal property your calculation should not be based on the current “used” value but the value to “replace” or purchase these items brand new. Your personal items includes your clothing, your furniture, your small appliances, electronics & media (games, cds, dvds, software,etc), dishes, pots &
