How much homeowners insurance do I need?

You should have enough insurance to cover the cost of rebuilding your home at current construction costs (replacement cost) and enough to replace your personal belongings.

The amount of homeowners insurance you need largely depends on the cost to rebuild your home in the event of a total loss. This includes the replacement cost of the structure itself and sufficient coverage for your personal belongings. You may also want to consider additional liability coverage if you have substantial assets that could be at risk in a lawsuit. It’s crucial to review your policy annually to ensure your coverage keeps up with rising construction costs and any home improvements you've made.

If a tree falls on your home during a windstorm, your homeowners insurance should cover the cost of repairs. You need enough coverage to fully rebuild your home if it’s destroyed. If you have an expensive collection of jewelry, you may need additional endorsements to ensure they’re fully covered.

Ensure your homeowners insurance covers the full replacement cost of your home and its contents. Regularly update your policy to reflect any home improvements and consider additional liability coverage if you have significant assets at risk.