In the event of a disaster, you’ll need enough homeowners insurance to rebuild your home, to help replace your belongings, to defray costs if you’re not able to live in your home, and to protect your finances in the event of liability to others. Here are a few guidelines to help determine the coverage you may need.
Determine How Much Insurance You Need For Your Home’s Structure
Standard homeowners insurance in Peoria, AZ, provides coverage for disasters such as damage due to fire, lightning, hail, and explosions. For those who live in areas where there is a risk of flood or earthquake, you will need separate coverage for those disasters as well. In any case, you’ll need the limits on your policy to be high enough to cover the cost of rebuilding your home.
Significant Factors That Could Impact Rebuilding Costs
- Local Construction Costs
- The Square Footage of the Structure
For a quick estimate of the amount of homeowners insurance you will need, multiply the total square footage of your home by local, per-square-foot building costs. You can find out construction costs in your community by calling your local real estate agent, builders association, or insurance agent.
Details That Can Impact Home Rebuilding Costs
- Style of the house (for example, ranch or colonial).
- Type of exterior wall construction.
- Number of bathrooms and other rooms.
- Other structures on the premises such as garages and sheds.
- Special or unique features such as fireplaces, exterior trim, or arched windows.
